Porsche announced on Wednesday that they will maintain their 2024 dividend at the same level as last year. Reuters calculated this decision despite a 30.4% decrease in net profit, as the luxury carmaker contends with high costs and reduced demand in China.
The company also lowered its medium-term margin target to 15-17% from 17-19%, citing a “persistently challenging environment”.
Porsche’s shares experienced their worst day on the stock market last month. They warned that its 2025 margin would reach only 10-12% this year because of an 800-million euro ($872.24 million) hit to profits as it pivoted back to more combustion engine and hybrid models.
The carmaker’s stock market debut in 2022 saw it valued higher than its parent company, Volkswagen AG. However, it has since “fallen from grace,” particularly struggling with low sales in China, its top market, where sales dropped 28% in 2024.
Similar to Volkswagen, which cautioned on Tuesday that margins would remain flat in 2025 while working to reduce costs, Porsche is also downsizing to improve profitability towards its long-term goal of 20%.
The luxury carmaker will eliminate 2,000 jobs in addition to the 1,900 already announced. It will also begin negotiations with unions in the second half of the year regarding further reductions, it said.
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