Porsche posts peak profits

Porsche's sales figures are in for the 2006 fiscal year, and profits are up by over ten percent to a staggering €7.27 billion. Production grew by nearly thirteen percent over last year, putting out more than 100,000 cars over the year.

Some would be inclined to attribute the record sales, profits and revenues to Porsche's drifting away from its core values with the Cayenne sport-ute, but the bulk of the success is attributed to the 911 and the new Cayman, pure sportscars through and through, while Cayenne sales dropped.

While most sportscar-makers are owned by larger automotive conglomerates – Ferrari by Fiat, Lamborghini by VW, Aston Martin by Ford (for now) – in Stuttgart, it's the other way around. Porsche's increasing financial success has enabled them to buy an increasing stake in the VW Group, in turn giving Porsche partial control over the full range of brands including Volkswagen, Audi, Seat, Skoda, Bentley, Lamborghini and Bugatti.

Porsche isn't planning on resting on its tire-treads either, with ambitious plans to expand in growing markets in Russia, China and the Middle East, and new models on the way .

(Follow the jump for the full press release.)

[Source: Porsche AG via Motor Authority]

Press Release

Porsche Up Once Again

Stuttgart. Dr. Ing. h.c. F. Porsche AG, Stuttgart, has exceeded its expectations in the 2005/2006 year of business, which ended on July 31. As the company stated on the eve of the Paris Motor Show, Porsche has reached new record levels in revenue, sales, and profits. According to provisional figures, revenue of the Porsche Group was up 10.6 per cent to approximately Euro 7.27 billion (previous year: Euro 6.57 billion). Profits increased overproportionally versus revenue growth. This is attributable to special effects such as the sale of the car roof production company CTS Fahrzeug-Dachsysteme GmbH as well as effects resulting from the company's share in Volkswagen. Profits continued to increase even without these special factors.

Group sales were up 9.5 per cent to a total of 96,794 cars (previous year: 88,379 units). This growth was driven in particular by Porsche's new sports cars, the 911 accelerating by 23.6 per cent to 34,386 units; never before have so many 911s been sold in one year of business. With sales of the two most powerful models, the 911 Turbo and 911 GT3, starting in June 2006, the new generation of this model series so rich in tradition has now been introduced almost completely in markets the world over. Starting in November, the new 911 Targa will also be at the dealership.

Up by 55 per cent, the increase in Boxster sales was even more significant. Out of the record figure of 27,906 units, 14,002 of the cars sold were new Cayman models. The market launch of the more powerful Cayman S had started in November 2005, the "basic" version of the Cayman following just before the end of the last business year in July 2006.

Sales of the Cayenne amounting to 34,134 units (previous year: 41,884 units) reached the same high level as the 911 even though the Cayenne was already in its fourth model year and Porsche as a company consistently maintains its policy not to grant any discounts on its SUV. Sales of the Carrera GT ending production as planned in May 2006 amounted to 368 units in the business year now under report (previous year: 660 units).

Total production was 102,602 units, 12.8 per cent more than in the previous year (90,954 units). Production of the 911 in Stuttgart-Zuffenhausen amounted to 36,504 cars, an increase over the previous year by 27.6 per cent. The Boxster model series assembled almost entirely in Finland due to great demand for both the 911 and the Boxster and Cayman models, reached an overall production volume of 30,680 units, an increase by 51 per cent. In Leipzig production of the Cayenne model series amounted to 35,128 units (down by 14.9 per cent) as well as 290 units of the Carrera GT (previous year: 715 units). This makes the Carrera GT the most successful high-performance sports car of all times, amounting to a total production figure of 1,282 units.

Despite all economic imponderables, Porsche is confident that in the current 2006/2007 year of business sales will at least achieve the exceptionally high level of the business year now over. This expectation is also attributable to the company's further enhanced and even more attractive model range, as well as the ongoing penetration of new markets. Particularly in rapidly growing markets such as Russia, China, and the Middle East, Porsche cars are in increasing demand. Porsche expects the next major boost in growth as of 2009, when the four-door Panamera sports coupé is launched.

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