Porsche's latest quarterly financial report shows that revenue decreased by 5.2% to 28.56 billion euros in the first three quarters of the year, with a net profit of 974 million euros, representing a 41% decrease from the same period last year. The company's cash flow decreased by 63% to 1.24 billion euros, and the operating profit margin fell to 10.7%, below the expected range of 17-19%.
To mitigate the decline, Porsche's Chief Financial Officer, Lutz Meschke, announced that the company plans to cut tens of billions of euros in costs by 2030. In the first three quarters of this year, Porsche sold approximately 226,000 vehicles globally, with an 8% increase in the German market, a 1% increase in European markets excluding Germany, and a 5% decline in the North American market. The Chinese market, however, saw a 29% decline, making it Porsche's third-largest market.
The company is taking steps to adapt to the declining market, including reducing its dealership network in China. The decision is seen as a strategic move to streamline operations and improve profitability in the face of decreasing demand.
The news has sent shockwaves through the automotive industry, with many analysts expressing concern about the implications of Porsche's financial performance on the global market. The company's decision to cut costs and reduce its dealership network is seen as a bold move to stay competitive in a rapidly changing market.
As the automotive industry undergoes a significant transformation, Porsche's financial performance serves as a reminder of the challenges that even the most successful companies face in the face of declining demand and increasing competition. The company's decision to cut costs and reduce its dealership network is a testament to its commitment to staying ahead of the curve and emerging stronger in the years to come.