Porsche fiscal second-half results
11-12-2003, 11:34 AM
#1
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Porsche fiscal second-half results
BN 10:08 Porsche Fiscal 2nd-Half Profit Rises 24%, Helped by Cayenne
Porsche Fiscal 2nd-Half Profit Rises 24%, Helped by Cayenne
Nov. 12 (Bloomberg) -- Porsche AG, the German carmaker with
the highest profit margins, increased fiscal second-half profit 24
percent on demand for the Cayenne sport-utility vehicle.
Net income in the six months ended July 31 rose to 463 million
euros ($538 million) from 372.6 million euros, Stuttgart, Germany-
based Porsche said in a statement to the Frankfurt stock exchange.
Pretax profit rose 11 percent to 747 million euros.
Porsche began selling the Cayenne, which costs 47,600 euros to
100,000 euros, a year ago. The model has compensated for a 15
percent decline in sales for the 911 and Boxster sports cars.
Porsche sold 20,603 Cayennes in the fiscal year ended July 31 and
expects to sell at least 25,000 Cayennes annually.
The waiting list for the Cayenne is between six months and a
year, depending on the model. The vehicle competes against
DaimlerChrysler AG's Mercedes M-Class and Bayerische Motoren Werke
AG's X5, as well as Ford Motor Co.'s Land Rover. General Motors
Corp. makes the Cadillac Escalade SUV and Toyota Motor Co.
manufacturers the Lexus LX 470.
Porsche is proposing a dividend of 3.34 euros for each common
share and 3.4 euros per preferred share.
Porsche shares fell as much as 14.69 euros, or 3.3 percent, to
426.51 euros and were down 2.5 percent to 430 euros in Frankfurt at
4:01 p.m.
Chief Executive Wendelin Wiedeking, 51, wanted to increase
sales and introduce a third model to offset the impact of the aging
sports-car models and falling demand. He opted to develop a sport-
utility vehicle because many Porsche drivers already owned one
built by competitors.
Cayenne Investment
Porsche's investments in the Cayenne included a new factory in
Leipzig in eastern Germany. The plant, built alongside a racetrack,
employs just 300 workers. Porsche currently makes two versions of
the eight-cylinder Cayenne and produces all of the engines itself.
The company reduced costs by developing the Cayenne with
Volkswagen AG, Europe's largest carmaker. Volkswagen builds the
basic frame for the Cayenne and its own Touareg sport-utility
vehicle in Bratislava, Slovakia.
Porsche will increase its cooperation with Volkswagen. The
company will begin selling a six-cylinder version of the Cayenne in
Europe this month with a motor made by Volkswagen. This will be the
first time since the 1980s that Porsche has used an engine that it
didn't develop itself. The basic motor is the same as used in the
Touareg.
The six-cylinder Cayenne will have a starting price of 47,592
euros in Germany.
-----------------------------====================------------------------------
Copyright (c) 2003, Bloomberg, L. P.
Porsche Fiscal 2nd-Half Profit Rises 24%, Helped by Cayenne
Nov. 12 (Bloomberg) -- Porsche AG, the German carmaker with
the highest profit margins, increased fiscal second-half profit 24
percent on demand for the Cayenne sport-utility vehicle.
Net income in the six months ended July 31 rose to 463 million
euros ($538 million) from 372.6 million euros, Stuttgart, Germany-
based Porsche said in a statement to the Frankfurt stock exchange.
Pretax profit rose 11 percent to 747 million euros.
Porsche began selling the Cayenne, which costs 47,600 euros to
100,000 euros, a year ago. The model has compensated for a 15
percent decline in sales for the 911 and Boxster sports cars.
Porsche sold 20,603 Cayennes in the fiscal year ended July 31 and
expects to sell at least 25,000 Cayennes annually.
The waiting list for the Cayenne is between six months and a
year, depending on the model. The vehicle competes against
DaimlerChrysler AG's Mercedes M-Class and Bayerische Motoren Werke
AG's X5, as well as Ford Motor Co.'s Land Rover. General Motors
Corp. makes the Cadillac Escalade SUV and Toyota Motor Co.
manufacturers the Lexus LX 470.
Porsche is proposing a dividend of 3.34 euros for each common
share and 3.4 euros per preferred share.
Porsche shares fell as much as 14.69 euros, or 3.3 percent, to
426.51 euros and were down 2.5 percent to 430 euros in Frankfurt at
4:01 p.m.
Chief Executive Wendelin Wiedeking, 51, wanted to increase
sales and introduce a third model to offset the impact of the aging
sports-car models and falling demand. He opted to develop a sport-
utility vehicle because many Porsche drivers already owned one
built by competitors.
Cayenne Investment
Porsche's investments in the Cayenne included a new factory in
Leipzig in eastern Germany. The plant, built alongside a racetrack,
employs just 300 workers. Porsche currently makes two versions of
the eight-cylinder Cayenne and produces all of the engines itself.
The company reduced costs by developing the Cayenne with
Volkswagen AG, Europe's largest carmaker. Volkswagen builds the
basic frame for the Cayenne and its own Touareg sport-utility
vehicle in Bratislava, Slovakia.
Porsche will increase its cooperation with Volkswagen. The
company will begin selling a six-cylinder version of the Cayenne in
Europe this month with a motor made by Volkswagen. This will be the
first time since the 1980s that Porsche has used an engine that it
didn't develop itself. The basic motor is the same as used in the
Touareg.
The six-cylinder Cayenne will have a starting price of 47,592
euros in Germany.
-----------------------------====================------------------------------
Copyright (c) 2003, Bloomberg, L. P.
11-12-2003, 12:42 PM
#2
Three Wheelin'
Hope they're putting that profit into developing better performance cars.
Not complaining about the existence of the Cayenne. Why turn your back on easy money? I just won't be buying one any time . . . never.
-J
Not complaining about the existence of the Cayenne. Why turn your back on easy money? I just won't be buying one any time . . . never.
-J