Porsche’s operating income in the first quarter increased slightly year-on-year

In the first three months of 2020, Porsche posted revenues of 6 billion euros, a slight increase compared to the same period last year. Affected by the new crown pneumonia epidemic, Porsche’s sales profit was 600 million euros, a year-on-year decrease of 34%; the return on sales was 9.5%; new car deliveries fell by 5%. As of the end of March, Porsche had delivered 53,125 new cars. Since the beginning of the year, the number of employees has increased by 1% to 35,866.

Porsche's operating income in the first quarter increased slightly year-on-year

Lutz Meschke, Deputy Chairman and Member of the Executive Board of Porsche AG, responsible for Finance and Information Technology, said: “The slight increase in the company’s operating income is due to an active and effective Good development.” Porsche continues to invest heavily in electrification and digitalization, due to the low input-output ratio due to the impact of the new crown pneumonia epidemic. On top of this, administrative expenses have also increased due to the introduction of new models such as the all-electric sports car Taycan. The epidemic crisis has prevented the increase in income in the first quarter from offsetting expenses.

“The global spread of the coronavirus is the main challenge facing Porsche. It is important to maintain optimism and a systematic management approach so that we can resume work at full speed when the crisis is over. We remain committed to investing in the electrification and digitization of our vehicles. “Oliver Blume, Chairman of the Executive Board of Porsche AG, said: “Even at such a special moment, we have an obligation to fulfill our social responsibilities. We are organizing donations and supporting government work, such as purchasing medical protective equipment. In addition , we also have a lot of employees who take the initiative to volunteer.”

“Even in times of crisis we make responsible decisions and see adversity as an opportunity,” said Meschke. “We are now investing in managing costs, liquidity and cash flow to protect our business and are ready to fully implement our strategy once the crisis is over.”