Stuttgart. In a difficult economic climate, Dr. Ing. h.c. F. Porsche AG of Stuttgart, Germany remained on its growth path in the 2003/04 fiscal year that ended on July 31. The record financial reference figures for the previous fiscal year were once again exceeded. Group turnover rose by 13.9 percent to 6.36 billion Euro. With pre-tax results up by 16.6 percent to 1.088 billion Euro, Porsche has achieved the best results in its corporate history. The Group's surplus for the year (after-tax result) rose by 8.3 percent to 612 million Euro. At 38.80 Euro, the profit per share again significantly exceeded the previous year's figure of 35.20 Euro.
Porsche's earning power is reflected in an especially impressive way in its extended cash flow. This figure, which also includes all changes in provisions, increased by 19.9 percent to 1.67 billion Euro in the 2003/04 fiscal year. Net liquidity – in other words liquid funds less financial liabilities – increased by 33.6 percent to 1.82 billion Euro.
Significant growth in sales thanks to the Cayenne
In the 2003/04 fiscal year, Group sales rose by 15 percent to 76,827 units, thanks to the Cayenne, which admirably offset the lifecycle-dependent downturn in sports car sales. This sports off-road vehicle sold 39,913 units compared to 20,603 units in the previous year, in which the Cayenne was introduced successively to international markets. Sales of the 911 model line fell by 14.7 percent to 23,704 units, but the trend toward a higher-value model mix persisted. Boxster sales went down by 29.5 percent to 12,988 units. Sales of the high-performance Carrera GT sports car stood at 222 units in its first year of production.
In North America – Porsche's largest market – sales rose by eight percent to 31,356 units. All other export markets recorded even better growth rates, with an overall increase of 39.4 percent to 33,295 units. Contrary to the negative market trend, Porsche also enjoyed growth on the German market, where sales rose by 3.9 percent to 12,176 units.
Production at record levels
Including 8,862 Boxsters assembled in Finland, Porsche produced a total of 81,531 cars – an increase of 11.3 percent. This figure includes 41,149 Cayenne models, compared to 24,925 the previous year, when production of the Cayenne at the new Porsche factory in Leipzig was gradually increased. Production of the 911 stood at 26,650 units (minus 9.9 percent), while Boxster production stood at 13,462 units (minus 28.3 percent). 270 Carrera GT cars were produced.
Number of employees rises
Porsche again created a number of new jobs in the 2003/2004 fiscal year. At the end of the review year the Group employed 11,668 people, an increase of 9.1 percent from 10,699 in the previous year. The largest proportion of this increase, a total of 939 employees, was in the CTS Car Top Systems Group, which was fully consolidated for the first time in this fiscal year. The total of 7,992 employees at Porsche AG is lower than last year's figure of 8,078.
The shareholders' general meeting to be held on January 28, 2005 in Stuttgart will be asked to approve dividend payments of 3.94 Euro per share to common-stock holders for the 2003/04 fiscal year (dividend for the previous year: 3.34 Euro) and 4.00 Euro to preferred-stock holders (dividend for the previous year: 3.40 Euro). The sum distributed as dividends on common and preferred stock will total approximately 69.5 million Euro and thus exceed last year's figure (approximately 59 million Euro) by 17.8 percent. Nevertheless, the distribution quota of 11.4 percent is comparatively low, which allows the company to make high allocations to reserves as well as significant investments in research and development for the future.
Promising start to the current fiscal year
The company remained on its growth course in the first four months of the current 2004/05 fiscal year. According to preliminary figures for the period from August 1 to November 30, 2004, Group turnover rose to 1.98 billion Euro, an increase of 4.0 percent compared to the same period of the previous year. Sales rose by 7.0 percent to 23,546 units. The 911 model line was exceptionally successful, selling 8,452 units (an increase of 18.6 percent), to which the new generation Carrera models contributed significantly. The Cayenne model line also achieved a strong increase in sales to 13,011 units (plus 15.2 percent), whereas the Boxster model line registered a fall of 46.7 percent to 1,916 units prior to the appearance of the new model generation on November 27. In the first four months of the current fiscal year production rose by 2.5 percent to 26,823 units.
Porsche has confident expectations for the 2004/05 fiscal year as whole. The new 911 and the new-generation Boxster, which is now being introduced successively to international markets, will lend additional impetus to the Porsche sports car business. Thanks to the even more attractive product program, the company is expecting renewed growth in the current fiscal year.
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