Supply shortages to hit sales and margin at Porsche

23rd Jul 2024 10:18

(Sharecast News) - Shares in Porsche came under pressure on Tuesday, after the luxury marque warned supply issues would likely dent its full-year numbers.

The German sports car manufacturer said a number of its suppliers had been affected by a "significant" supply shortage relating to aluminium alloys, after a key production facility was flooded.

It continued: "Despite immediate countermeasures, it is becoming apparent that the impending supply shortage will lead to impairments in production.

"These are expected to last several weeks, and may possible lead to production shutdowns or one or more vehicle series."

Porsche has therefore amended its full-year forecasts, and is now predicting sales revenues of between €39bn and €40bn, down from previous guidance for between €40bn and €42bn.

The return on sales was also trimmed, to between 14% and 15% from between 15% and 17% previously. The automotive EBITDA margin range is expected to be 23% to 24%, down from an earlier forecast for 24% to 26%.

As at 1115 BST, shares in Porsche had lost 2%, having partially recovered from steeper losses earlier in the session.

Heavy rain in the south of German caused severe flooding last month. Much of the country's car industry is based in the region.

Porsche is listed on the Frankfurt Stock Exchange but remains majority owned by Volkswagen Group. It is due to publish interim numbers on Wednesday.