Photo credit: www.investing.com

Porsche Adjusts Sales Outlook Amid Supply Chain Challenges

(Reuters) – On Tuesday, Porsche announced a revised sales forecast for the year, citing significant challenges in production due to a shortage of aluminum alloys that have affected several suppliers.

The luxury automaker now projects sales will reach between 39 billion and 40 billion euros ($43.56 billion), a decrease from its earlier estimate of 40 billion to 42 billion euros. This revision follows recent flooding at one of its main aluminum suppliers’ facilities, which has severely hampered production.

The ongoing supply issues have impacted all vehicle series produced by Porsche, raising concerns about potential production halts for one or more vehicle lines. The company has indicated that it will not be able to fully mitigate the delays in vehicle production and delivery throughout the remaining months of the year.

In light of these challenges, Porsche recalibrated its return on sales expectations to a range of 14% to 15%, down from an earlier forecast of 15% to 17%. This announcement comes at a time when the company is also grappling with diminished demand in China, leading to a 7% drop in global deliveries during the first half of the year.

Additionally, Porsche is experiencing a slump in electric vehicle (EV) sales this year. The company has moderated its ambitions for EV production, explicitly linking future plans to customer demand and broader trends in the electrification of the automotive market.

($1 = 0.9183 euros)

Source
www.investing.com