Porsche: 2024 targets lowered due to shortages
(CercleFinance.com) - On Tuesday morning Porsche announced that it had lowered its financial targets for 2024 due to supply problems that are penalizing its production.
The luxury car manufacturer explains that it has been affected by flooding at a plant of a major aluminum supplier, whose products are used in all its vehicle ranges.
According to the automotive group, it has become clear that these shortages, which are likely to last several weeks, will potentially lead to production lines being shut down, with no way of making up for the delay this year.
As a result, Porsche says it is now only targeting FY 2024 sales of E39bn to E40bn, down from E40bn to E42bn previously.
Its automotive businesses are now expected to post an EBITDA margin of 23% to 24%, instead of 24% to 26%.
While the Stuttgart-based company refers in its financial notice to a case of 'force majeure', some analysts are more perplexed.
We are surprised by the frequency with which Porsche is affected by supply difficulties, compared with other automotive groups whose supply chains have proved particularly stable since the semiconductor crisis passed, UBS points out.
This raises questions about Porsche's supply chain management, it says.
On the Frankfurt Stock Exchange, Porsche shares were down 3.6% on Tuesday morning in the wake of these announcements.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The luxury car manufacturer explains that it has been affected by flooding at a plant of a major aluminum supplier, whose products are used in all its vehicle ranges.
According to the automotive group, it has become clear that these shortages, which are likely to last several weeks, will potentially lead to production lines being shut down, with no way of making up for the delay this year.
As a result, Porsche says it is now only targeting FY 2024 sales of E39bn to E40bn, down from E40bn to E42bn previously.
Its automotive businesses are now expected to post an EBITDA margin of 23% to 24%, instead of 24% to 26%.
While the Stuttgart-based company refers in its financial notice to a case of 'force majeure', some analysts are more perplexed.
We are surprised by the frequency with which Porsche is affected by supply difficulties, compared with other automotive groups whose supply chains have proved particularly stable since the semiconductor crisis passed, UBS points out.
This raises questions about Porsche's supply chain management, it says.
On the Frankfurt Stock Exchange, Porsche shares were down 3.6% on Tuesday morning in the wake of these announcements.
Copyright (c) 2024 CercleFinance.com. All rights reserved.