Porsche Reports Earnings Gains in Weak Economy | Business| Economy and finance news from a German perspective | DW | 24.01.2003
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Porsche Reports Earnings Gains in Weak Economy

Germany's Porsche, the world's most-profitable carmaker, released impressive results for the first half of its fiscal year on Friday. Porsche says profit rose by 18 percent in the six months running to the end of January. Net income was up by 13.8 percent to about €102 million ($110 million), and sales increased by 20 percent. But with the popularity of Porsche's former hot models waning, the Stuttgart-based company is pinning its new hopes on the Cayenne sports utility vehicle.

The German luxury sports car maker posted profits of some €185 million during the first half of the current fiscal year. The 18-percent jump from the same period a year earlier exceeded analysts' expectations. Porsche forecasts sales will rise at least 5 percent in the second half, boosted by continued strong demand for its Boxster and higher-margin 911 models.

But some analysts say both models are too old. They believe added horsepower and new bumpers won't be enough to trigger such strong demand. Moreover, Porsche depends on the United States for about half of its sales, but American consumption is stagnating.

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