Porsche predicts steady 2014 earnings on U.S. expansion spending

March 14, 2014 – 7:04 am ET

STUTTGART (Bloomberg) — Porsche predicts that earnings will be stable in 2014 as the sports activities vehicle maker invests in U.S. and Chinese operations.

Investment investing will concentrate on incorporating distribution outlets in emerging markets, with 30 new dealerships planned for China by 2015, the producer mentioned nowadays in a statement.

Investments in the United States will complete $ 25 million, Porsche explained, without having specifying a time frame.

Porsche stated operating profit rose 6 percent final year to 2.58 billion euros ($ 3.58 billion), and the brand’;s 18 % return on sales was the highest margin of any division at Volkswagen Group.

Porsche has sustained earnings growth as demand for upscale vehicles stays unscathed by economic woes troubling the mass-industry section. Operating profit this yr will be “at least” at the 2013 level, Porsche explained today. “We’;re well ready for the existing fiscal yr,” Chief Fiscal Officer Lutz Meschke mentioned in the text of a ready speech.

Deliveries rise

Global deliveries at Porsche rose 15 % to a record 162,145 vehicles and SUVs final 12 months. Demand for the Boxster roadster and related Cayman sports car far more than doubled in 2013 and the business rolled out fresh variants of its iconic 911.

Final month, Porsche CEO Matthias Mueller stated the automaker will exceed 200,000 in annual deliveries in 2015, 3 many years earlier than very first targeted, on demand for the new Macan compact SUV, which will go on sale subsequent month. The Macan will be Porsche’s 2nd SUV after the Cayenne and is expected to substitute the larger car as the marque’s very best-selling model.

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