Porsche: Sales Up 6.7 Pct. in 4 Months Options

[qa1142]

(IMG:http://www.914world.com/bbs2/html/emoticons/aktion035.gif)

AP
Porsche: Sales Up 6.7 Pct. in 4 Months
Wednesday December 7, 11:48 am ET
Porsche Says Sales Up 6.7 Percent in First Four Months of Fiscal Year

BERLIN (AP) -- Luxury automaker Porsche AG said Wednesday that sales rose 6.7 percent in the first four months of its fiscal year, fueled by strong demand for revamped versions of its 911 and Boxster models.
The company said sales came to 2.02 billion euros ($2.38 billion) in the period ending Nov. 30. It did not release a comparable figure for last year.

Chief Executive Wendelin Wiedeking said he expects higher unit sales and revenue in the current fiscal year due to new models like high-end versions of the 911 model.

While he is "quite optimistic" for the fiscal year ending July 31, the impact of high oil prices and inflation on consumer demand is "difficult to estimate," he said.

Porsche shares dropped 4.5 percent to 625.37 euros ($733.33).

Wiedeking also noted that Porsche has to make "enormous" investments for development of hybrid technology and the new four-seater Panamera model, to be launched in 2009.

The company plans to develop a hybrid version of its Cayenne sport utility vehicle, which would combine a gasoline engine with an electric motor to reduce fuel consumption and emissions.

Wiedeking said Porsche will continue its model offensive in the future, especially now that it has a "firm partnership" with Volkswagen AG, with which it develops hybrid technology.

Porsche spent about 3.5 billion euros ($4.1 billion) to increase its stake in VW, Chief Financial Officer Holger Haerter said Wednesday. Porsche raised its stake to 18.5 percent at the beginning of October, making it VW's biggest single shareholder.

Haerter said Porsche hasn't exercised an option to acquire an additional 3.4 percent stake, but could do so at "any time."

At a news conference, Wiedeking said investment in the Panamera will be in the three-digit-million euro (dollar) range in the current fiscal year. It will be Porsche's fourth model line, joining the 911, Boxster and Cayenne.

The company's midterm target is to sell 100,000 cars annually, excluding the Panamera. Porsche's vehicle sales rose around 15 percent on the year to 88,379 in its fiscal year 2005, which ended July 31.

In the first four months of the 2006 fiscal year, sales of the 911 were up 11.4 percent to 9,439 vehicles, while Boxster sales more than doubled to 4,998 vehicles, including the first units of the new Cayman S model. Sales for the Cayenne SUV fell 16.7 percent to 10,974.

[double-a]

three cheers for a healthy and growing economy. (IMG:http://www.914world.com/bbs2/html/emoticons/smilie_pokal.gif) (IMG:http://www.914world.com/bbs2/html/emoticons/smilie_pokal.gif) (IMG:http://www.914world.com/bbs2/html/emoticons/smilie_pokal.gif)

~a

[fiid]

Good news indeed. I wouldn't say exactly that we have a healthy and growing economy though. The US has some significant problems to overcome - not least our deficit and the housing situation which is broadly believed to be a bubble.

It's encouraging to see Porsche investigating hybrid technologies, although it worries me that none of the manufacturers are seriously messing with anything more extreme than that.

[MattR]

QUOTE (double-a @ Dec 7 2005, 09:24 AM)

three cheers for a healthy and growing economy. (IMG:http://www.914world.com/bbs2/html/emoticons/smilie_pokal.gif) (IMG:http://www.914world.com/bbs2/html/emoticons/smilie_pokal.gif) (IMG:http://www.914world.com/bbs2/html/emoticons/smilie_pokal.gif) ~a

I dont know about the entire economy, but the rich are getting richer.

[double-a]

oh here we go again... those evil rich and their conspicuous consumption. i don't know about the rest of you working stiffs, but my average, lower-middle-class retirement savings has been doing great the last couple years. i look at the glass half-full i guess (IMG:http://www.914world.com/bbs2/html/emoticons/beer3.gif)

~a