Porsche AG reported a profit gain for the first quarter of this year, identifying the increased demand for its third-generation Cayenne launched last year as a contributing factor.
Specifically, the company said in its statement on Wednesday that its earnings before tax and interest “more than doubled” to 496 million euros ($728 million). The company did not indicate how much it earned last year. The company’s sales reached 2.28 billion euros, which is a 10 percent increase.
This is the first time that the company released its results for the first quarter after it has shifted to calendar-year reporting to make its operations consistent with Volkswagen AG.
The company’s fiscal year ended on July 31. In addition, the company’s bestselling vehicle model, the Cayenne, obtained record sales of 11,487 vehicles, an increase of 62 percent, during the first quarter. On the other hand, sales for the four-door Panamera dropped to 4,715 units, or 5.5 percent.
Also, the sales of the 911 sports car fell 17 percent to 4,750 units. The company is aiming to double its sales worldwide to 200,000 cars in 2018 by increasing sales in the emerging markets as well as adding new vehicle lineup such as a compact sports utility vehicle.
Earlier this month, Porsche SE obtained funds of 4.9 billion euros in a rights offering, selling 49.9 percent of its car manufacturing unit.
The sale will be utilized to reduce debt and facilitate the automaker’s merger with VW. These two companies had agreed to a merger last 2009 after Porsche incurred a debt of more than 10 billion euros in its failed attempt to obtain control of VW.
On another note, manufacturers of luxury vehicles like Daimler AG's Mercedes-Benz and BMW AG are expecting record demand for this year as spending in the United States are rebounding and wealth in China is increasing.