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Porsche Expects A Successful 2023 As Its Nine-Month Profits Soar

Porsche Expects A Successful 2023 As Its Nine-Month Profits Soar
Porsche predicted a successful 2023 as its capacity to raise prices protected it from the costs of supply chain hiccups. Porsche reported a 40.6% increase in operating profit to more than 5 billion euros ($5 billion) in the first nine months of 2022.
Even though it produced a 17.8% profit margin in the third quarter, up from 15.5% last year, the automaker did not raise its annual margin outlook from 17–18%.
Chief Financial Officer Lutz Meschke expressed confidence in the luxury brand's ability to pass price increases on to its expanding customer base of high net worth individuals and predicted a "strong 2023" in spite of macroeconomic uncertainty.
In a media call, Meschke emphasized the need to safeguard supply chains across the globe from assaults and cybercrime, raising concerns about the possibility of politically motivated supply chain bottlenecks.
The chief financial officer did not state specifically who required protection from whom, but pointed to recent attacks on the Nord Stream pipelines and Deutsche Bahn as examples of security lapses with serious supply-chain repercussions.
Shares barely changed from yesterday's close of 99.26 euros to 100.1 euros at 13:40 GMT.
So far this year, deliveries are up just 2% to a little over 221,500 vehicles, with exchange rate effects helping to increase profitability per vehicle.
"The third quarter of 2022 was quite volatile and challenging from a political, economic and social perspective. Nevertheless, we were able to successfully list Porsche and get off to a flying start," said Meschke.
Meschke responded that Porsche AG was in close contact with Google and Apple as well as Baidu, Tencent, and Alibaba in China for automated driving and infotainment technology when asked about the company's plans for software development now that Porsche AG has terminated its cooperation with Volkswagen's Cariad unit for future research and development.
After the listing, Porsche, a significant revenue generator for the Volkswagen group, surpassed its former parent as the most valuable automaker in Europe. By Thursday's close, its shares had increased from their initial listing price of 82.50 euros to 99 euros.
Volkswagen AG still holds a 75% minus one ordinary share ownership stake in Porsche AG.
The listing, according to both companies' chief executive Oliver Blume, would increase Porsche's entrepreneurial freedom while giving Volkswagen much-needed capital for its electrification drive.
Volkswagen's third-quarter earnings were reduced by 1.6 billion euros in the short term due to the cost of the listing and the impact of ceasing operations in Russia, according to figures released on Friday.

Christopher J. Mitchell

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