Porsche trims outlook as tariffs add to 'storm' of challenges
The burden of tariffs on car imports to the United States only added to Porsche's woes, as it undergoes a costly restructuring while facing weakness in its key market China and a sluggish transition to electric cars.
"We continue to face significant challenges around the world. And this is not a storm that will pass," Porsche CEO Oliver Blume said.
Taking into account the newly agreed tariff of 15 per cent from August 1, the German carmaker expects group sales this year in the range of 37 to 38 billion euros, in line with its previous forecast, and a return on sales of between 5 and 7 per cent, down from a previously expected 6.5-8.5 per cent range.
Countermeasures such as price adjustments are included in that outlook as Porsche seeks to mitigate the damage, the company said. Group figures released last week showed Porsche's operating profit collapsing by 91 per cent year on year in the second quarter, to 154 million euros.
In February, Porsche announced an additional 1,900 job cuts over the next four years but said it cannot announce any forced redundancies under a location safeguarding agreement valid until 2030.
On Wednesday, Porsche said its management was "resolutely pushing ahead with extensive measures to rescale and recalibrate the company", with negotiations with employee representatives to begin in the second half of the year.
In the first half, Porsche booked special expenses for the company's realignment of around 200 million euros and around 500 million euros for battery activities.
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Hindustan Times
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First Post
38 minutes ago
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India begins groundwork for US tariff deal, ministries told to draft sector-wise concessions: Report
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Time of India
an hour ago
- Time of India
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Explore courses from Top Institutes in Please select course: Select a Course Category MBA healthcare Public Policy others CXO Leadership Artificial Intelligence Degree Management Finance Digital Marketing Cybersecurity Product Management Project Management Data Science Healthcare Technology MCA Others Data Science Operations Management Design Thinking Data Analytics PGDM Skills you'll gain: Analytical Skills Financial Literacy Leadership and Management Skills Strategic Thinking Duration: 24 Months Vellore Institute of Technology VIT Online MBA Starts on Aug 14, 2024 Get Details Skills you'll gain: Financial Management Team Leadership & Collaboration Financial Reporting & Analysis Advocacy Strategies for Leadership Duration: 18 Months UMass Global Master of Business Administration (MBA) Starts on May 13, 2024 Get Details 'Many Araku growers don't even own a smartphone to initiate geotagging, and awareness of the stringent European regulation is alarmingly low,' he says, requesting anonymity, also adding that the penalties for EU importers are severe — not just limited to confiscation of noncompliant shipments, but extending to fines of up to 4% of the company's total annual turnover within the EU from the previous financial year. 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'We're working to reduce the role of middlemen by encouraging Araku farmers to engage directly with companies and even invest in small-scale curing units of their own,' says Kalpana Kumari, managing director of Girijan Cooperative Corporation, a state-run body that procures coffee and minor forest produce from tribal farmers. 'Tata Coffee, Continental Coffee, Third Wave — so many multinational enterprises are sourcing and exporting Araku coffee now,' she adds.
