16:00 - 12.03.2025

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March 12, Fineko/abc.az. German luxury car manufacturer Porsche AG has reduced its net profit and profitability in 2024 and predicts a further decline in profitability this year.

According to company's press release, its revenue decreased by 1.1% to €40.1 bn.

Operating profit dropped by 22.6% to €5.6 bn, while net profit by 30.3% to €3.6 bn.

Car shipments fell by 3% to 310,700 vehicles.

The operating margin reduced to 14.1% from 18% a year earlier.

In 2025, the automaker expects profitability to fall to 10-12% and forecasts revenue in the range of €39 bn to €40 bn.

The Porsche management recommended an annual dividend of €2.3 per share, at the level of 2023.

The company also announced its intention to reduce a total of 3,900 employees by 2029. Nearly 1,900 employees will be reduced through the provision of compensation packages, early retirement incentives and restrictions on hiring new workers, and 2,000 more jobs will be cut after the expiration of fixed-term employment agreements.

Porsche shares are down 3.9% at Wednesday's auction. Since the beginning of the year, company's capitalization has declined by 6.4%, to €51.7 bn.