Porsche AG Records 1Q Profit Drop as Coronavirus Keeps Costs High
April 30 2020 - 06:24AM
Dow Jones News
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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