Porsche to raise prices further as profits jump

·1-min read
The logo of German carmaker Porsche AG is seen before the company's annual news conference in Stuttgart

BERLIN (Reuters) -Luxury carmaker Porsche will raise prices by 4-8% in Europe and the U.S. in the second half to combat higher costs that weighed on returns in the first quarter, even as profits and revenue jumped by over 25%, it said on Wednesday.

The company was still seeing issues with the supply of semiconductors and parts for the electric Taycan's high voltage heating system, but expects them to ease in the coming months, Chief Financial Officer Lutz Meschke said on a call following first quarter results.

Broadly, its order backlog was high globally after a record 18% rise in deliveries in the first quarter, and targets for 2023 of a 17% to 19% return on sales on revenue of 40 to 42 billion euros ($46.36 billion) were on track, Meschke added.

Porsche listed on the stock market in September last year, splitting from its former parent Volkswagen - a decision Meschke said was leading to higher speed in decision-making on products and hiring.

The company reported revenue of 10.1 billion euros in the first quarter of 2023 and operating profit of 1.84 billion euros, beating expectations of three analysts polled by Refinitiv.

Operating profit in its financial services arm declined to 86 million euros from 102 million previously, which it attributed to the valuation of interest rate hedges and derivatives as well as the impact of the interest rate rise on financing products.

($1 = 0.9060 euros)

(Reporting by Victoria Waldersee; Editing by Maria Sheahan and Matthias Williams)