Porsche AG posts 21% hike in first-half operating profit to EUR1.26 billion

Article by Anita Panait, on July 28, 2012

Porsche AG posted a 21-percent increase in operating profit for the first half of 2012 to EUR1.26 billion ($1.55 billion) from EUR1.05 billion for the same period in 2011. The company also posted a 29-percent surge in revenues in the review period to EUR6.76 billion. The carmaker’s operating profit soared primarily thanks to the strong demand for its new-generation Porsche 911.

Matthias Mueller, Porsche’s chief executive, remarked that since the carmaker offers outstanding sports cars that “live up to the highest demands,” the company could still achieve success even in economically difficult times. It should be noted that Porsche posted an increase in operating profit despite competing in Europe, where the demand for vehicles has been declining for the past four years.

This European economic decline has prompted rivals PSA/Peugeot-Citroen and General Motors to consider closing plants in the continent and has set off Ford to warn that its losses in the region could exceed $1 billion in 2012.

In contrast, Porsche predicts that it would post a higher profit for 2012 while increasing spending on new models. Porsche AG is bound to see its ownership structure change next week when the Volkswagen Group completes its full takeover of the brand, according to the latter’s Chief Financial Officer Hans Dieter Poetsch.

Volkswagen Group reached a deal on July 4 to acquire a 50.1 percent stake it currently does not own in the brand from Porsche SE for EUR4.46 billion. VW’s takeover of Porsche AG is seen as part of VW chief executive Martin Winterkorn's goal to become the largest carmaker in the world, effectively overtaking rival giants Toyota Motor Corp. and GM to become the world's largest automaker.

No matter from what angle you look, it’s clear that the style of the Porsche 911 Carrera has evolved. The front section for instance has been redesigned and made wider. New headlights have been placed in this area with the side air intakes becoming larger. Going to the sides, making the windscreen even more convex allowed the new 911 Carrera to have a livelier quality to it and its character nearer to a coupe.

And that’s true even the rear section has a number of modifications. Like the side intakes, the variably extending spoiler is now wider. This helps it highlight the fact that the vehicle has a higher output and when combined with the other features whose aerodynamics have been optimized, ensuring that it continues to have a good Cd value while lift is reduced. The rear lights, which still utilize LED technology, have been changed as well making it narrower and even redesigned.

One distinct feature that customers are sure to love is that the 911 Carrera will be the world’s first ever passenger car to have the manual seven-speed transmission fitted inside it as standard. This transmission is inspired by the module used on the seven-speed Doppelkupplungsgetriebe (PDK), which is offered as an option under the new 911 Carrera.

For the manual transmission, the driver gets access to the outstanding acceleration ability due to the close ratio present in the first six gears. Meanwhile for the seventh gear, it has quasi-overdrive qualities which help enhance fuel economy. This latest offering from the brand is also projected to bring with it new benchmarks with regards to the Porsche Intelligent Performance.

Indeed, the new 911 Carrera not only utilizes the advanced lightweight body made of aluminum and steel, it combines this with a number of functions and parts with the goal of being able to offer excellent driving dynamics and at the same time exceptional efficiency. Another achievement for the 911 Carrera is that it will be Porsche’s first sports car to have the auto start/stop function.

This is included with either the 911 Carrera has the manual transmission or the optional PDK. With this, the vehicle is able to save as much as 0.6 liters for every 100 kilometers (under the New European Driving Cycle).

Further, the addition of a thermal management system for both the engine and the transmission combined with the on-board electrical recuperation system results in a further reduction on fuel consumption by 0.35 liters 1/100 km. In addition, the new cooling design removes the need for ventilation openings to be placed on the underbody. This adds to the aerodynamics and thus improves performance.

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Topics: porsche, profit



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