© Reuters. FILE PHOTO: People inspect Porsche cars at The London EV Show, in London, Britain November 30, 2023. REUTERS/Maja Smiejkowska/File Photo
BERLIN (Reuters) -German luxury carmaker Porsche expects profitability to tick downwards in 2024 as it focuses on launching four new models, the company said on Tuesday, posting full-year results largely in line with expectations despite market volatility.
The group, which is majority-owned by Volkswagen (ETR:), is targeting an operating return on sales in the range of 15-17% in 2024, after reaching 18% in 2023.
“In the medium term, we are sticking to our forecast of an operating return on sales of around 17% to 19%,” Porsche’s finance chief Lutz Meschke said in a statement. “And, in the long run, we are aiming for a group operating return on sales of more than 20%.”
Porsche’s Frankfurt-listed shares were seen opening 3.2% lower.
The shares have risen 1.8% year-to-date, underperforming a 10% increase in the STOXX Europe 600 Automobiles & Parts index, with analysts pointing to fierce competition in China and expected ramp-up costs for the new model launches this year.
Shares in rival Ferrari (NYSE:) are up about a quarter over the same period.
Earlier this month, Porsche parent Volkswagen said sales growth would slow in 2024 due to numerous headwinds, including weaker economic growth, stiffer competition and higher costs.
In 2023, Porsche posted sales of 40.5 billion euros, largely in line with an LSEG estimate, while the return on sales beat expectations for an operating margin of 17.7%.
With four new launches in its Panamera, Macan, Taycan and 911 model lines planned for 2024, Porsche said it is planning the biggest year of product launches in the company’s history.
