Porsche AG Warns of Lower Profitability This Year But Lifts Dividend

By David Sachs

Porsche AG warned of lower profitability this year, citing global economic conditions, but lifted its dividend after its 2023 operating profit rose.

The German premium sports-car maker said Tuesday that it expects its operating return on sales to decline to between 15% and 17% in 2024 after posting an 18% margin last year, unchanged from 2022.

As well as the renewal of its product range in 2024, "global framework conditions, higher depreciations on capitalized development costs and the continued investments in the brand and the Porsche ecosystem," contributed to the lowering of its expectations, the company said.

Porsche's sales revenue rose 7.7% from 2022 to 40.53 billion euros ($44.29 billion), the company said. Analysts had expected sales of EUR40.29 billion, according to the Visible Alpha consensus.

Operating profit jumped 7.6% to EUR7.28 billion, Porsche said. The company proposed a dividend of EUR2.30 per ordinary share compared with EUR1.00 in 2022.

The company expects sales of between EUR40 billion and EUR42 billion this year.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

March 12, 2024 03:28 ET (07:28 GMT)

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