By Jessica Sier 
 

Porsche AG recorded a drop in first-quarter profits as persistently high costs caused sales to slump, the Volkswagen AG subsidiary said Thursday.

The German sports-car manufacturer said operating profit fell by 34% to 600 million euros ($651.4 million), compared to the previous year.

Return on sales dropped to 9.5% and deliveries were down by 5%, the company said.

"As a result of the coronavirus crisis, a drop in volume and costs related to continued high investments in electrification and digitalization both worked against the positive developments," said Lutz Meschke, deputy chairman of the executive board at Porsche.

"Due to the coronavirus crisis, these expenditures were not able to be offset by increased earnings in the first quarter," he said.

 

Write to Jessica Sier at jessica.sier@wsj.com

 

(END) Dow Jones Newswires

April 30, 2020 06:09 ET (10:09 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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