Porsche profit plummets by more than 70 percent

The profits of sports and off-road vehicle manufacturer Porsche plummeted in the first half of the year. The group result from January to June amounted to 718 million euros, as the company announced. That is a drop of a good 71 percent. In the same period last year, the surplus was still just under 2.2 billion euros.

The situation has therefore deteriorated further: In the first quarter, the Stuttgart-based company still reported an after-tax profit of around 518 million euros - in the period from April to June, only 200 million was added.

In the car business - i.e. excluding financial services - Porsche recorded an operating profit slump of almost 91 percent. Porsche CEO Oliver Blume said: "We are still facing considerable challenges worldwide. It is not a storm that is passing." The world is changing massively - and differently than expected just a few years ago. Blume does not expect "positive economic momentum" again until 2026.

Porsche is struggling in China in particular. The management recently reported a drop in sales - especially in the People's Republic. High conversion costs and US import duties are also weighing on business. The sluggish transition to e-mobility also involves considerable investment.

Cost-cutting is therefore the order of the day: structures are to shrink, and Porsche management plans to cut around 1900 jobs in the Stuttgart region by 2029. And a further savings program is already in the works. Blume prepared the workforce for further cuts in a letter last week.