Porsche’s Q1 profit margin plunges on China weakness, US tariffs

[FRANKFURT] Luxury sports carmaker Porsche on Tuesday (Apr 29) said its operating margin fell to 8.6 per cent in the first quarter, below analyst estimates, hit by weaker demand in China as well as US import tariffs.

“The macroeconomic situation will remain challenging. We can’t completely escape this, but we are doing everything within our power to counteract it,” finance chief Jochen Breckner said.

First-quarter sales fell 1.7 per cent to 8.86 billion euros (S$13.2 billion), while the group’s operating profit plunged 40.6 per cent to 0.76 billion, said Porsche, which late on Monday cut its full-year outlook.

Analysts in an LSEG poll had, on average, expected an operating margin of 9.8 per cent in the first quarter. REUTERS