Porsche AG first quarter results: Operating profit decreased 30% to $1.37 billion due to ramp-up costs.

FRANKFURT: Porsche on Friday reported a 30% decline in first-quarter operating profit, citing increased investment in what the German luxury carmaker called its biggest product launch year in its history. Operating profit for the first three months of 2024 was 1.28 billion euros ($1.37 billion), in line with LSEG estimates, and sales for the period were 9.01 billion euros, exceeding expectations of $8.77 billion.

“Despite the difficult environment, we remain on the right track and resolutely pursue our strategy,” Oliver Blume, head of Porsche’s parent company Volkswagen and CEO of Porsche AG, said in a statement.

German automakers are struggling to revive Chinese demand. Rivals BMW and Mercedes saw a drop in deliveries to their country’s biggest market, while Porsche recorded a 24% slump in quarterly deliveries.

Porsche finance chief Lutz Meschke said demand in China remained challenging but the company would not compromise margins by avoiding the price war gripping the local market.

The group, which listed in 2022 to receive higher valuation multiples, maintained its 2024 outlook for 2024 profit margins at 15-17%.