Porsche Reports 1% Sales Decline Amid China Challenges

Porsche reported a challenging fiscal 2024, with global sales declining by 1% to €40.08 billion and a significant drop in operating profit by 22.6% to €5.64 billion, primarily due to poor performance in China and rising costs associated with product renewals. The company expects its operating return on sales (ROS) to fall to 10-12% in 2025, down from a previous forecast of 17-19%. With deliveries decreasing by 3% overall and a notable 28% decline in China, Porsche is also considering passing tariff costs onto customers amidst escalating trade tensions. The automaker announced a workforce reduction, cutting 1,900 jobs by 2029, as part of a broader restructuring strategy that includes increased investment in combustion engines and hybrids. Despite these challenges, Porsche achieved record sales in four out of five global regions, demonstrating resilience in a tough market. Looking ahead, the company remains committed to its long-term target of maintaining an ROS of over 20%.