Porsche shares hit on concerns about the outlook
The German luxury sports car maker Porsche AG saw a good set of numbers for its third quarter and said it is on target for the full year, but the cloud on the horizon is the consumer and headwinds from markets in China.
(Video Transcript)
Porsche results promising as possible downturn looms
The German luxury auto giant Porsche AG has reported earnings out today for the nine months. On the surface, they look pretty good. But there's been a warning about the outlook and that has disturbed shares in the session in today's trade.
Let's take a look at the numbers as we see them break this morning where we saw operating profits up to €5.5 billion: that was up 9% on a 12.6% rise in revenue to €31bn. Now, in amongst the numbers, the company said it confirmed it outlook for the full-year this year between 17 to 19% return on sales and and the long-term picture not looking too bad.
That being said, there has been some anecdotal evidence in the numbers suggesting that things are not looking as rosy as we've seen this particular quarter. The supply chain it says was improving but it warned that the luxury sector was suffering, like others, from higher costs and dampened consumer confidence as interest rates rise.
Russian-Ukraine war upsetting German markets
And, of course, we have the disturbance as well in Europe from the war in the eastern part between Russia and Ukraine and that is really disturbing the German markets as much as anything. Let's take a look at the share price charts where we see these big declines from the recent highs back in June 2021 all the way up at €102 here. We are now at €43.09.
Pull this out. You can see we're now trading at levels in this market not seen since May 2020 and the down draft continues in today's session. We're now something like around about eight or nine days of losses in a row, compounded by the outlook. Today,despite the good numbers we're seeing from Porsche, the outlook remains a little bit concerning.
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