Annual Results
Wednesday 6th December 2006
Porsche 911: profitablePorsche's announced its annual figures, revealing results that most carmakers would give their right arms for.
Porsche gushes cash
Annual results show big sales increases
Porsche 911: profitable
Pre-tax profits are up to €2.11 billion from €1.238 billion, and after taxes and after taxes it's still €1.393 billion, almost doubling the previous year's income. And the company's still got almost €2 billion cash in the bank, despite buying almost 30 per cent of VW.
Porsche sold a record-breaking 96,794 cars, up nearly ten per cent on the previous year in a period when most carmakers are struggling to maintain parity. Stuttgart puts the increase down to the new 911 and the Cayman, which has been very well-received, according to Porsche. Interestingly, Porsche still sold more 911s than Boxsters and Caymans, although sales figures for the three model ranges were all close, clustered around 35,000 in the model year 2005/6.
For the future, Porsche said that: "Even Porsche faces restrictions ... in the world today. However, Porsche will not in any way deviate from the Company's clearly profit-oriented – and not volume-oriented – business policy. Up to the launch of the Porsche Panamera, Porsche will focus on the consolidation of business on a high level. The company then expects the next major thrust in growth as of 2009 when the new four-door Sports Coupé enters the market."
The only question is what else Porsche might have planned for all that cash. Some have postulated that Porsche, now a major VW shareholder, might spin off Audi -- and maybe even Bentley and Lamborghini -- from VW and set up a separate group, much like Ford's PAG.
What a decision to have to make! Ford and General Motors, eat your hearts out...
Discussion
mondeoman said:
fidgits said:
well, they're doing something right!
Yep, concentrating on thier core product - sports cars, not trying to become a "mainstream" manufacturer with a finger in every class.
Be interesting to see how BMW have done since they started chasing every market sector...
well, the 3 series is outselling the Mondeo - but I think that has devalued the brand somewhat..
aston67 said:
"profit of €20,000 or £14,000 per car sold"
can you tell me where did you get this information, please?
thanks
A67
can you tell me where did you get this information, please?
thanks
A67
Its the pre-tax profit figure quoted in the article (2.11 billion) divided by the number of cars sold quoted in the article (96 thousand odd).
Though when I do the maths I get 21,798 euros per car. Perhaps the number was rounded down.
I'd like to see the original press release - anyone have a link to it? Can't find it on the Porsche website.
Also can't make sense of the numbers sold - if 911, Boxster and Cayman are all "clustered around 35,000" Three times 35K = 105 thousand? But only 96K were sold altogether and what about the Cayenne?
So roughly £15K pre-tax profit/car sold (I suppose £8K on a Boxster and £20K on a 911 'ish). This is the result of modern production methods etc - as are the rare but very expensive failures of engines and gearboxes.
Come on Mr Porsche - reduce the prices of crancase sets, supply short engines at cost, make the gearbox internals available and help out your customers - but then I suppose buyers of cars over 5 years old and 50K miles are actually not their customers anymore!
Baz Hartech
Come on Mr Porsche - reduce the prices of crancase sets, supply short engines at cost, make the gearbox internals available and help out your customers - but then I suppose buyers of cars over 5 years old and 50K miles are actually not their customers anymore!
Baz Hartech
tertius said:
Can't find it on the Porsche website.
www.porsche.com/uk/aboutporsche/investorrelations/overviewpage-annurep0506/
edoardo said:
XTR2Turbo said:
profit of €20,000 or £14,000 per car sold.
That's the same thing I thought first when reading the article.
amazing. from the quoted figures it's € 21,800 = £ 14700 per car pre tax.
I'd like to see their revenue so that we can guess an average price per car sold.
And then of course the dealer has his own profit to make, which is the price we pay less their payment to Porsche for the car....
Blimmey, they must cost less to build than a very cheap thing!
hartech said:
So roughly £15K pre-tax profit/car sold (I suppose £8K on a Boxster and £20K on a 911 'ish).
Don't forget this is net of ALL costs. In terms of production costs, reckon on gross profit £15k Boxster £20k Cayman (as this is £5k over-priced) and £40k 911. I don't believe a 911 costs a great deal more (say £10k max) than the others to R&D and make.
can you tell me where did you get this information, please?
I'd like to see the original press release - anyone have a link to it? Can't find it on the Porsche website.
Here is the full press article porschesport not posted on porschesport website (non-motorsport news)
Porsche enjoys further Growth
Stuttgart. Dr. Ing. h.c. F. Porsche AG, Stuttgart, continued its process of ongoing growth in the 2005/2006 Year of Business (31 July), once again significantly increasing the result of the Company's core business. This was attributable first and foremost to the ongoing improvement of Porsche's model mix. The significant jump in the Group's pre-tax profits to Euro 2.110 (previous year: Euro 1.238) billion is mainly attributable, on the other hand, to non-recurring, one-off effects and special factors. These include the sale of CTS Fahrzeug-Dachsysteme GmbH, Bietigheim-Bissingen, with a book value of Euro 80.7 million, profits earned through the Company's share in Volkswagen AG amounting to Euro 203 million, as well as proceeds from stock price hedging transactions in connection with the acquisition of a share in Volkswagen high up in the three-digit million-Euro range.
Dividend payment up 80 per cent
The Group's annual surplus (profits after taxes) was up in the 2005/2006 Year of Business to Euro 1.393 (previous year: Euro 0.779) billion. The profit per share amounted to Euro 78.10 (Euro 44.68) for common stock and Euro 78.22 (Euro 44.74) for preferred stock. Porsche plans to pay shareholders a share in this outstanding development of the Company: The Annual General Meeting to be held on 26 January 2007 for the first time in the new Porsche Arena will be advised to increase the dividend to Euro 5.94 (Euro 4.94) for each common share and Euro 6.- (Euro 5.-) for each preferred share. To provide for the high non-recurring profits, a special dividend of Euro 3.- per common and preferred share is also to be distributed to shareholders. This would increase the total dividend payment to Euro 157 (Euro 87) million, up by 80 per cent.
Healthy liquidity
Reflecting Porsche's excellent order book, liquid funds are up 31 per cent to Euro 4.75 billion. Net liquidity – liquid funds less financial accounts payable without financial services business – dropped only by a relatively small amount to Euro 1.881 billion despite acquisition of the Company's share in Volkswagen. The extended cash-flow, one of the most significant parameters for management of the Company, increased in the year under report from Euro 1.332 billion to Euro 2.1 billion.
Significant increase in sales and revenues
Selling a total of 96,794 cars, Porsche again set up a new sales record in the 2005/2006 Year of Business. The increase in sales over the previous year was 9.5 per cent. Group revenue was up by an even greater margin, growing 10.6 per cent to Euro 7.27 billion. This growth was driven by Porsche's sports cars, in particular the 911. The newly introduced Cayman models also received a great response from customers in markets the world over.
Significant increase in production
In the year under report Porsche's Main Plant in Zuffenhausen built a total of 36,504 units of the Porsche 911 – more than ever before. The Leipzig Plant built 35,128 units of the Cayenne and 290 units of the Carrera GT, which reached the end of its production as planned in May 2006. Including the well over 30,000 Boxsters assembled in Finland – the model range which also comprises the Cayman – production increased to a total of 102,602 units, up 12.8 per cent over the previous year.
Jobs created in Research and Development
Taking the sale of CTS Fahrzeug-Dachsysteme into account with approximately 910 employees, the number of Porsche Group employees increased in the year under report by 3.8 per cent to 11,384. New jobs were created above all in Research and Development as well as in the Services sector. On 31 July 2006, the day of the Annual Accounts, Porsche AG had exactly 8,257 employees, more than 3 per cent over the previous year's figure.
Outlook: Sales network in young markets continuing to grow
Porsche remains moderately confident in the 2006/2007 Year of Business, which started on 1 August. Considering fluctuations in the markets, discount battles and political restraints, even Porsche faces restrictions of this kind in the world today. However, Porsche will not in any way deviate from the Company's clearly profit-oriented – and not volume-oriented – business policy. Up to the launch of the Porsche Panamera Porsche will focus on the consolidation of business on a high level. The company then expects the next major thrust in growth as of 2009 when the new four-door Sports Coupé enters the market.
Figures in the first four months of the current Year of Business nevertheless show that Porsche as a manufacturer of sporty premium cars is continuing successfully: Revenue in this period is up 0.7 percent to Euro
2.05 billion, sales show an increase by 0.4 per cent to 25,850 units sold.
These include 10,350 units of the Porsche 911; with growth of this model series amounting to 8.5 per cent. The Boxster and Cayman are up 53.7 per cent to a total sales volume in the sane four months of 7,750 units.
Reflecting its lifecycle, the Cayenne is down in sales by 29.2 per cent to 7,740 units. With the introduction of the new Cayenne in February 2007 Porsche expects an improvement of sales in this model series.
However, there is no longer the same direction of development in the various market regions. While Porsche sales in Germany are up 12.4 per cent to 3,950 units and in the rest of the world by an even more significant
15.3 per cent to 12,590 cars, sales in North America are down 17.6 per cent to 9,310 units. The high level of sales achieved in the previous year is to be maintained once again throughout all model series in the 2006/2007 Year of Business. Particularly the young markets will contribute to this sales volume, with the sales network in Russia, for example, growing to 16 dealers in the current Year of Business (compared with ten dealers in the previous year). The rate of expansion is even greater in China, with Porsche's presence in the market expanding from 12 to 20 dealerships.
I'd like to see the original press release - anyone have a link to it? Can't find it on the Porsche website.
Here is the full press article porschesport not posted on porschesport website (non-motorsport news)
Porsche enjoys further Growth
Stuttgart. Dr. Ing. h.c. F. Porsche AG, Stuttgart, continued its process of ongoing growth in the 2005/2006 Year of Business (31 July), once again significantly increasing the result of the Company's core business. This was attributable first and foremost to the ongoing improvement of Porsche's model mix. The significant jump in the Group's pre-tax profits to Euro 2.110 (previous year: Euro 1.238) billion is mainly attributable, on the other hand, to non-recurring, one-off effects and special factors. These include the sale of CTS Fahrzeug-Dachsysteme GmbH, Bietigheim-Bissingen, with a book value of Euro 80.7 million, profits earned through the Company's share in Volkswagen AG amounting to Euro 203 million, as well as proceeds from stock price hedging transactions in connection with the acquisition of a share in Volkswagen high up in the three-digit million-Euro range.
Dividend payment up 80 per cent
The Group's annual surplus (profits after taxes) was up in the 2005/2006 Year of Business to Euro 1.393 (previous year: Euro 0.779) billion. The profit per share amounted to Euro 78.10 (Euro 44.68) for common stock and Euro 78.22 (Euro 44.74) for preferred stock. Porsche plans to pay shareholders a share in this outstanding development of the Company: The Annual General Meeting to be held on 26 January 2007 for the first time in the new Porsche Arena will be advised to increase the dividend to Euro 5.94 (Euro 4.94) for each common share and Euro 6.- (Euro 5.-) for each preferred share. To provide for the high non-recurring profits, a special dividend of Euro 3.- per common and preferred share is also to be distributed to shareholders. This would increase the total dividend payment to Euro 157 (Euro 87) million, up by 80 per cent.
Healthy liquidity
Reflecting Porsche's excellent order book, liquid funds are up 31 per cent to Euro 4.75 billion. Net liquidity – liquid funds less financial accounts payable without financial services business – dropped only by a relatively small amount to Euro 1.881 billion despite acquisition of the Company's share in Volkswagen. The extended cash-flow, one of the most significant parameters for management of the Company, increased in the year under report from Euro 1.332 billion to Euro 2.1 billion.
Significant increase in sales and revenues
Selling a total of 96,794 cars, Porsche again set up a new sales record in the 2005/2006 Year of Business. The increase in sales over the previous year was 9.5 per cent. Group revenue was up by an even greater margin, growing 10.6 per cent to Euro 7.27 billion. This growth was driven by Porsche's sports cars, in particular the 911. The newly introduced Cayman models also received a great response from customers in markets the world over.
Significant increase in production
In the year under report Porsche's Main Plant in Zuffenhausen built a total of 36,504 units of the Porsche 911 – more than ever before. The Leipzig Plant built 35,128 units of the Cayenne and 290 units of the Carrera GT, which reached the end of its production as planned in May 2006. Including the well over 30,000 Boxsters assembled in Finland – the model range which also comprises the Cayman – production increased to a total of 102,602 units, up 12.8 per cent over the previous year.
Jobs created in Research and Development
Taking the sale of CTS Fahrzeug-Dachsysteme into account with approximately 910 employees, the number of Porsche Group employees increased in the year under report by 3.8 per cent to 11,384. New jobs were created above all in Research and Development as well as in the Services sector. On 31 July 2006, the day of the Annual Accounts, Porsche AG had exactly 8,257 employees, more than 3 per cent over the previous year's figure.
Outlook: Sales network in young markets continuing to grow
Porsche remains moderately confident in the 2006/2007 Year of Business, which started on 1 August. Considering fluctuations in the markets, discount battles and political restraints, even Porsche faces restrictions of this kind in the world today. However, Porsche will not in any way deviate from the Company's clearly profit-oriented – and not volume-oriented – business policy. Up to the launch of the Porsche Panamera Porsche will focus on the consolidation of business on a high level. The company then expects the next major thrust in growth as of 2009 when the new four-door Sports Coupé enters the market.
Figures in the first four months of the current Year of Business nevertheless show that Porsche as a manufacturer of sporty premium cars is continuing successfully: Revenue in this period is up 0.7 percent to Euro
2.05 billion, sales show an increase by 0.4 per cent to 25,850 units sold.
These include 10,350 units of the Porsche 911; with growth of this model series amounting to 8.5 per cent. The Boxster and Cayman are up 53.7 per cent to a total sales volume in the sane four months of 7,750 units.
Reflecting its lifecycle, the Cayenne is down in sales by 29.2 per cent to 7,740 units. With the introduction of the new Cayenne in February 2007 Porsche expects an improvement of sales in this model series.
However, there is no longer the same direction of development in the various market regions. While Porsche sales in Germany are up 12.4 per cent to 3,950 units and in the rest of the world by an even more significant
15.3 per cent to 12,590 cars, sales in North America are down 17.6 per cent to 9,310 units. The high level of sales achieved in the previous year is to be maintained once again throughout all model series in the 2006/2007 Year of Business. Particularly the young markets will contribute to this sales volume, with the sales network in Russia, for example, growing to 16 dealers in the current Year of Business (compared with ten dealers in the previous year). The rate of expansion is even greater in China, with Porsche's presence in the market expanding from 12 to 20 dealerships.
alfanatic said:
aston67 said:
"profit of €20,000 or £14,000 per car sold"
can you tell me where did you get this information, please?
thanks
A67
can you tell me where did you get this information, please?
thanks
A67
Profits before tax over number of cars sold gives a bit over 21K Euros per car. Of course, Aston67 may have got the figure elsewhere.
Does the Profit include 2nd hand cars or is that dealers profit?
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