Porsche Financial Results Cause Tears of Joy
January 25, 2008

Porsche reported Friday it expects double-digit revenue gains in the first six months of its fiscal year on the strength of Cayenne sales, expected to double to more than 20,000 units in the first half.

Porsche's Chief Executive Wendelin Wiedeking said the semiannual results are "expected to reflect our optimistic expectations." In a company statement cited by Dow Jones, Wiedeking added, "Barring the unexpected, we should again achieve a result where it will be difficult to suppress tears of joy."

Porsche, which has its fiscal year ending in July, predicts first-half revenue will rise about 14.2 percent.  Car sales for the six-month period through January are expected to soar 18.7 percent to about 46,600 vehicles.

The Stuttgart, Germany-based automaker said it expects fiscal year 2008 to "follow up on the high level of sales in the previous year," driven by growth for new models and in the emerging markets of China and Russia. The company said North America is showing signs of solid growth, with car sales up 11.4 percent to around 16,200 vehicles. It said it is "well-prepared for a possible economic crisis in the U.S.A."

Porsche said it won’t release earnings before March, when figures or Volkswagen AG, not yet available, are taken into account. Porsche is Volkswagen's largest shareholder with its 31 percent stake.

Merck Finck analyst Robert Heberger said in a note cited by Dow Jones that he predicts Porsche will have a major jump in operating performance with the 2009 launch of the Panamera. He rates Porsche’s stock a buy. In the past three months the stock has fallen 31 percent underperforming the auto sector index in Europe.

Porsche held its annual meeting Friday where the company’s dividend was increased and a stock split approved. The Porsche and Piech families control 100 percent of Porsche’s voting stock.

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