Porsche Financials

[Stormy_Monday]

https://www.reuters.com/business/autos- ... 025-02-07/

[blueline]

Snippets from the piece -

"Porsche to launch new combustion engine cars amid low EV demand..."
Ya think??? A bit slow on the uptake and late to the party Porsche.

"...shocked investors with a statement late on Thursday that it expected a profit margin of just 10-12% this year, below analysts' expectations of 14.8% and well under the mid-term target of 17-19%."
It will get worse before getting better.

"Porsche AG's shares fell 7% on Friday, the biggest drop among European firms and its worst day since listing on the stock market..."
And they are likely to fall further as more is revealed of the dirty truth and terrible postioning from management.

Unbelievably, amongst all of this backdrop, Porsche won't make profitable 911s or Caymans available in any kind of numbers for their NA market.

They also told PCNA three days ago that there will only be single digit PTS slots for the new CS2 for the entire MY 2025 run for ALL of Canada and the U.S. Fewer than nine of the highly profitable PTS slots were allocated for the new 992.2 Carrera S for all 2025 models. Unbelievable.

Blume needs to be fired from the poorly conceived positions as CEO of both Porsche SE and of Porsche AG. What was the Porsche board thinking? (Or smoking or drinking???) He and his four most recent predecessors have been a disaster for the company.

Porsche put themselves prostate to the Chinese and were too blind and too dumb to see the light and to anticipate what was coming. Those running Porsche are either in over their heads or are idiots, unable or unwilling to effectively make correct decisions.

[WillyDaP]

Might be a good time to consider buying some Porsche stock while on the downside.......hmmm.

[blueline]

Might be a good time to consider buying some Porsche stock while on the downside.......hmmm.

Personally, I generally don't invest directly in automakers or retail type stocks - they generally take investors for wild rides, most often to the extreme downsides, of which I can attest. The shakeouts in the auto industry are going to increase at an even faster pace I feel. (Many analysts and prognosticators agree on that.) How bad is anyone's guess. However, the survivors will do well as they generally tend to do after shakeouts. For me, any investments in the industry would be via the passive kind such as index and other funds - open-end, ETFs, etc.

Even if I were an investor in auto stocks, I wouldn't initiate a Porsche investment just now considering this whole scenario still has a lot of playing out to do. Too much unknown for me at the moment - I'm not interested in trying to catch a falling knife. However, YMMV, potentially for the good!

Some more Porsche analysis from from several big investment concerns courtesy WSJ.

https://www.wsj.com/business/auto-trans ... _permalink

A few relevant bits from the WSJ "Auto & Transport Roundup" piece, some of it cautiously hopeful :

"Porsche’s guidance implies 2025 EBIT will be 26% below consensus estimates, with the warning mostly related to slow electric-vehicle demand and restructuring costs, Morgan Stanley writes."

"The market is expecting a new combustion-engine Macan model in Europe in 2026, and if Porsche decides to launch it, this could support capacity utilization and margins, the bank adds."

"Porsche AG’s new strategic measures are the premium car maker’s last shot to prove it can turn around the business before losing more trust of long-term shareholders, Deutsche Bank analysts write."

"UBS says that the recently disclosed executive changes and development of new combustion engine cars are opportunities to get the business back on track. However, this will take time and investments will remain high. “A turnaround of the negative earnings trend is not a matter of just a couple of quarters.”

There are a slew of Porsche/VW articles today. At least the air is being cleared with a bit of contrition. I'm cautiously hopeful that things will move forward for the company in time.

edit: Danger, danger Will Robinson!!! As a yet another example in a growing line of failures, this just in. (Not at all unexpected, however.):

"Hydrogen-Truck Maker Nikola Nears Bankruptcy Filing" "The company, once worth $30 billion, is working with advisers on restructuring options" "Nikola, the much-hyped hydrogen-truck maker that was briefly valued more than Ford Motor, is nearing a bankruptcy filing, according to people familiar with the matter."

[RDMcG]

I think it is relevant that the voting shares are controlled by the Porsche/Piëch family. An open question for me would be the succession to Wolfgang. He is over 80. There has always been some tension between the two sides.

This type of tight family control sits above the management at the supervisory board level,and I think there needs to be some clarity about the leadership plan.

[blueline]

I think it is relevant that the voting shares are controlled by the Porsche/Piëch family. An open question for me would be the succession to Wolfgang. He is over 80. There has always been some tension between the two sides.

This type of tight family control sits above the management at the supervisory board level,and I think there needs to be some clarity about the leadership plan.

The whole setup seems awkward and terribly inefficient to me. As you said, no clarity. I bet there is a LOT of internal squabbling and many with countless knives stuck in their backs. The whole corporate monstrosity with its Gordian knots everywhere could do with a massive house-cleaning and restructuring. What a waste of financial and other resources.

[Stormy_Monday]

https://breakingthenews.net/Article/Por ... y/63528562

[RDMcG]

Caught on the horns of a dilemma - lack of demand for EVs in Europe and North America, Chinese market barrelling to EVs and possible tarriffs from US today.

Difficult to pivot quickly in terms of product planning and also to meet new environmental standards for new models.
I suspect that the electric supercar that was previewed will not show up soon.

[Tom]

I know it's hard to just fire people in most of Europe, but this still sounds more like a sound bite to please investors than an actual call to action. 1900 people over 5 years, based on attrition alone? In addition to being a small and slow workforce reduction, corporate plans 5 years out tend to have the same efficacy as weather predictions over the same time period. Makes sense to me though -- buy time and hope the market brings some clarity soon? I wouldn't want to be at the helm. There's a tectonic shift coming with EV's, but hard to know if that's in the next 5 years or the next 50. Porsche's choices today will help them become the next Netflix, or the next Blockbuster Video....

[Stormy_Monday]

I found this "strategy" amusing. This is part of the reasons that European industries are having their clocks cleaned. IMHO