Porsche trims outlook as tariffs add to ‘storm' of challenges
The burden of tariffs on car imports to the US 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. This is not a storm that will pass," Porsche CEO Oliver Blume said.
Taking into account the newly agreed tariff of 15% from August 1, the German carmaker expects group sales this year in the range of €37bn (R764.30bn) to €38bbn (R784.95bn), in line with its previous forecast, and a return on sales of between 5% and 7%, down from a previously expected 6.5% to 8.5% range.
Countermeasures such as price adjustments are included in the outlook as Porsche seeks to mitigate the damage, the company said.
Group figures released last week showed Porsche's operating profit collapsing by 91% year on year in the second quarter to €154m (R3.18bn).
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