As the Macan compact sport-utility vehicle and the 918 Spyder hybrid join the product lineup, Porsche Ag said profit growth is likely to restart in 2014.
The luxury sports brand is forecasting an increase in earnings before interest and taxes next year after spending on new vehicles increased and started hurting the operating profit in 2013, preventing its further growth, according to Porsche Chief Financial Officer Lutz Meschke.
“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.”
Porsche will have investments of more than 1.3 billion euros ($1.76 billion) in 2013, also totaling north of 1 billion euros each year after 2014, Meschke added.
“I expect Porsche earnings to rise next year,” said Daniel Schwarz, a Frankfurt-based analyst at Commerzbank AG. “The Macan is set to be the key earnings driver in 2014, especially in the second half of the year. The 911 lineup should also reach its peak.”
Porsche made up no less than 1.29 billion euros of Volkswagen’s first-half operating profit of 5.78 billion euros, allowing the luxury brand to move into the third position as the group’s earnings contributor, after Audi and the namesake VW brand. The division’s operating return of no less than 18% makes it one of the world’s most profitable automakers.