Porsche revenue down 12% in 2008-09

Porsche revenue down 12% in 2008-09

Berlin: Porsche said on Wednesday that its revenue declined by 12% in the past financial year as the economic crisis hit the car market, but said it expects improving sales in the current year.

The sports car maker said revenue totalled €6.6 billion (nearly $9.9 billion) in the 12 months that ended 31 July. Unit sales declined by a sharper 24% to 75,238 vehicles, it added.

The smaller drop in revenue resulted from the fact that higher-value 911 models accounted for a greater proportion of sales than previously, while sales of the more economical Boxster range dropped more sharply, Porsche said.

Porsche said its total car production declined by 27% over the previous financial year to 76,739 vehicles.

The company said its management is “optimistic as to the development of the company" in the current financial year.

Porsche “expects a revival in sales", it said in a statement, adding that it “can count on an attractive range of products, including the new Panamera, in particular".

Stuttgart-based Porsche Automobil Holding SE reiterated in its full-year report that it had a pretax loss of €4.4 billion ($6.6 billion) because of costs related to its attempted takeover of Volkswagen AG. That compared with a pretax profit the previous year of €8.6 billion.

It also confirmed that it eked out a net profit of €8.23 million after drawing €1 billion from revenue reserves allowing it to pay out a small dividend.

Porsche initially released those two figures on 12 November.

Porsche accumulated heavy debt in a failed attempt to take over larger auto maker Volkswagen, with which it is now slated to merge.