As the Macan compact sport-utility vehicle and the 918 Spyder hybrid join the product lineup, Porsche Ag said profit growth is likely to resume in 2014.
The brand is targeting an increase in earnings before interest and taxes next year after a jump in spending on new vehicles prevents operating profit from rising in 2013, Porsche Chief Financial Officer Lutz Meschke said.
“Expenses for the capacity expansion and the new model lines will be significantly higher in the second half of the year than in the first half,” Meschke said in an interview at Porsche headquarters in Stuttgart, Germany. Increasing profit in 2014 “is the goal.”
Investments by Porsche this year will exceed 1.3 billion euros ($1.76 billion), and will then total more than 1 billion euros annually as of 2014, Meschke said. The business will continue to fund projects from operating cash flow, and its automotive unit has no plan to seek resources in the capital market, the CFO said.
Porsche accounted for 1.29 billion euros of Volkswagen’s first-half operating profit of 5.78 billion euros, making it the third-largest earnings contributor after Audi and the mass-market VW passenger-car brand. The division’s operating return on sales of 18% makes it one of the world’s most profitable car manufacturers.
) - Wednesday, October 9th, 2013 - filed under Industry
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