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Porsche, newly listed, sees strong 2023 as 9-month profits soar



BERLIN – Porsche reported a 40.6% jump in operating profit to more than 5 billion euros ($5 billion) for the first nine months of 2022 and predicted a strong 2023 as price appreciation shielded it from costs of the supply chain.

However, the automaker did not raise its annual profit margin outlook by 17-18% even as it delivered a profit margin of 17.8% in the third quarter, up from 15.5. % of last year.

finance director Lutz Meschke predicts a “strong 2023” and says he is not fazed by macroeconomic uncertainty, pointing to the possibility that the luxury brand could raise prices for its growing customer base including high net worth individuals.

Meschke warned in a media call of the need to protect worldwide supply chains from attacks and cybercrime, raising concerns about politically motivated supply chain bottlenecks. in front of.

The chief financial officer did not specify who needed protection from whom but cited the recent attacks on Nord Stream and Deutsche Bahn pipelines as examples of security breaches with serious consequences for supplies.

Shares only edged up slightly to 100.1 euros at 13:40 GMT from yesterday’s close of 99.26 euros.

So far, deliveries have grown only 2% to more than 221,500 vehicles this year, with the impact of exchange rates helping to boost profits per vehicle.

“The third quarter of 2022 was quite volatile and challenging from a political, economic and social perspective. However, we were able to successfully list Porsche and get off to a good start,” said Meschke.

When asked about the software development plan that Porsche AG has terminated cooperation with Volkswagen’s Cariad’s future research and development unit, Meschke said the company has close ties to Google and Apple as well as Baidu, Tencent and Alibaba in the past. China for infotainment technology and autonomous driving.

Porsche, the big money maker for the Volkswagen group, has overtaken its former parent company to become Europe’s most valuable carmaker after listing. Its shares stood at 99 euros as of the end of Thursday, up from the list price of 82.50 euros.

Overall, 75% minus one common share of the total share capital of Porsche AG remains owned by Volkswagen AG.

Oliver Blume, chief executive officer of both companies, said the listing would strengthen Porsche’s freedom as a business while also providing Volkswagen with the funds it needs for its electrification system. mine.

In the short term, listing costs and the impact of the suspension of business in Russia pushed Volkswagen’s third-quarter profit down 1.6 billion euros, results released on Friday showed.

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