FRANKFURT: The German carmaker Porsche Automobil Holding said Monday that its revenues fell more than 12 percent in the first half, as fewer people bought the company’s luxury cars amid the slumping economy.
The Stuttgart-based company said revenues in the August-January period fell 12.8 percent to 3.04 billion, or $3.8 billion. The company did not report net profit, but said its pretax profit rose during the period, without being more specific. The company’s complete earnings report is due at the end of March.
Porsche said it also saw higher costs during the period related to the production of its new sedan, the Grand Turismo Panamera and for the development of the hybrid version of its Cayenne SUV.
Sales in the period dropped 27 percent, to 34,266 cars. The flagship 911 sportscar sold 13,543 units during the period, compared to 16,261 in the year-ago period, while the Boxster sold 3,950 units compared with 9,835.
The Cayenne SUV, meanwhile sold 16,773 units, compared with 20,638 in the year-ago period.
Sales in Germany slipped to 4,152 cars from 5,630 in the same period last year. In North America, Porsche sold 11,998 cars, down from 16,209 a year ago.
Despite the drop, Porsche said it hoped to gain ground in sales during the second half of its fiscal year, with new Boxster and Cayman models that hit the market in February. The company also said it hoped its new Cayenne diesel SUV, to be introduced this week at the Geneva Auto Show, would add to sales.
The company said that while the market remains difficult, it was confident of the future.
“In total, Porsche feels well equipped to withstand the very difficult market conditions,” the company said in its statement.
It noted that its stock options trading business, based largely on its majority stake in Volkswagen AG, Europe’s largest carmaker, contributed to the company’s profits during the period. It provided no details.
Porsche also said it is in the process of negotiating a 10 billion line of credit with banks, which it expects to conclude at the end of March.
Shares of Porsche were up 0.3 percent at 32.60 in Frankfurt morning trading. Meanwhile shares of VW were down 0.2 percent at 187.43.