Porsche's profit hot streak is expected to slow in 2016 as the Volkswagen Group brand is projecting flat earnings, although the financial performance is expected to remain strong overall.
The luxury automotive brand said Friday that its revenue would rise "slightly" but that earnings would "reach the same level" as 2015.One factor dragging earnings is a multibillion-dollar investment in the Mission E ultra-luxury electric vehicle, which made a splash with critics and enthusiasts when it was revealed last year. The vehicle is viewed as Porsche's response to Tesla Motors' popular Model S electric sedan.
Though Porsche is part of the Volkswagen family of brands, which also includes Audi and several other luxury nameplates, Porsche has not suffered a noticeable blow from VW's emissions scandal.
U.S. Environmental Protection Agency regulators have said certain models of the Porsche Cayenne contained software that was designed to cheat emissions standards, but the scandal is largely affecting the VW and Audi brands.
Porsche, in fact, reported $23.3 billion in sales for 2015, up 25% from a year earlier. It also reported an operating profit of $3.8 billion, also up 25%, with a pretax operating margin of 16%.
The brand sold more than 225,000 vehicles globally in 2015, up 19%.
Porsche CEO Oliver Blume, in a statement, called it “extraordinary results even by Porsche standards."
Still, Porsche declared that it is primarily focused on profit and not sales volume — which aligns with VW's shift away from volume in the wake of its emissions scandal.
Source : usatoday.com
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