After a three-year loss, Porsche Automobil Holding SE predicts to be profitable again in 2011 based on sales of the Panamera sedan and because of the drop in the costs linked to a merger with Volkswagen AG. Porsche said it has set a goal to break even in the last five months of 2010.
Porsche, which will switch to calendar-year reporting next year, said that the net loss in the 12 months ended July 31 fell to 454 million euros ($633 million) from a loss of 3.56 billion euros a year earlier.
Matthias Mueller, who was tasked to lead Porsche’s carmaking operations last month, will be responsible for completing Porsche’s merger with VW next year and expanding models across four vehicle lines to double annual sales to 150,000 cars and SUVs by 2014.
It can be recalled that VW acquired 49.9% of the Porsche AG operating unit after Porsche botched a takeover attempt for VW.
Frank Schwope, an analyst at NordLB in Hanover, Germany, recommends holding the stock. He explained that the driving force in Porsche’s aim to be profitable is the “improving vehicle sales,” specifically the Panamera and Cayenne models.
He predicts that Porsche deliveries will reach nearly 100,000 in 2011 compared with about 81,850 in the 12 months through July. [via autonews - sub. required]