Core Viewpoint - Porsche's financial performance has drastically declined, with a 99% drop in operating profit for the first three quarters of the year, attributed to strategic restructuring costs, challenges in the luxury car market in China, and increased import tariffs in the U.S. [1][3] Financial Performance - For the first three quarters of the year, Porsche reported revenue of €26.86 billion, a 6% year-on-year decline [3] - Operating profit fell to €40 million, down from €4.035 billion in the same period last year, resulting in a sales return rate of 0.2%, compared to 14.1% last year [3][4] - The company faced approximately €2.7 billion in additional costs due to restructuring measures [4] Market Challenges - Porsche's sales volume decreased by 6% to 212,500 units, with significant declines in key markets: a 26% drop in China (32,000 units) and a 16% drop in Germany (22,500 units) [3][4] - Other luxury car manufacturers, such as Mercedes-Benz and BMW, are also experiencing sales declines and have announced cost-cutting measures [5] Strategic Adjustments - Porsche plans to expand its internal combustion engine and plug-in hybrid model lineup, delaying the launch of some electric models and restructuring its electric vehicle development strategy [7] - The company is also increasing prices in the U.S. market to offset tariff impacts, which have added €300 million in costs in the first nine months of the year [8] Organizational Changes - Porsche is initiating a structural reduction, planning to cut approximately 1,900 jobs at its Stuttgart headquarters by 2029, alongside the expiration of contracts for 2,000 temporary employees [4] - A leadership change is set to occur, with the current CEO stepping down at the end of the year, and a new CEO taking over in January 2026 [8] Future Outlook - Porsche aims to improve its profitability starting in 2026 after a projected bottoming out in 2025, with a target sales return rate of up to 2% [8] - The company emphasizes the importance of long-term resilience and profitability despite short-term financial challenges [9]

Core Insights - Porsche's operating profit for the first three quarters of this year plummeted by 99% to €40 million (approximately ¥331 million), compared to €4.035 billion (approximately ¥33.4 billion) in the same period last year [1][3] - The company's sales return rate dropped to 0.2%, down from 14.1% year-on-year [1][3] - The significant decline in performance is attributed to special expenses from product strategy restructuring, challenges in the Chinese luxury car market, increased costs from U.S. import tariffs, and one-time impacts related to battery business [1][3][4] Financial Performance - Porsche's revenue for the first three quarters was €26.86 billion, a 6% decline year-on-year [3] - The company sold 212,500 vehicles, a 6% decrease, with notable declines in key markets: a 26% drop in China (32,000 units), a 16% drop in Germany (22,500 units), and a 4% drop in the rest of Europe (50,000 units) [3][4] Strategic Adjustments - Porsche announced a structural contraction, planning to cut approximately 1,900 jobs at its Stuttgart headquarters by 2029, with an additional 2,000 temporary contracts expiring [4] - The company is postponing the launch of certain electric vehicle models and extending the market lifecycle of several fuel and hybrid models, resulting in an additional €2.7 billion in expenses [3][4] - Porsche plans to increase prices in the U.S. market to offset the impact of tariffs, which have cost the company €300 million in the first nine months and are projected to reach €700 million for the year [8] Leadership Changes - Porsche announced a leadership change, with current CEO Oliver Blume set to step down at the end of the year, to be succeeded by Michael Leiters starting January 1, 2026 [8] Industry Context - Other luxury car manufacturers are also facing challenges, with Mercedes-Benz reporting a 12% decline in global sales for Q3 and BMW lowering its 2025 performance expectations due to weak sales and increased tariff costs [5]

Core Viewpoint - Porsche's financial performance has drastically declined, with a 99% drop in operating profit for the first three quarters of the year, attributed to strategic restructuring costs, challenges in the luxury car market in China, and rising import tariffs in the U.S. [1][2] Financial Performance - Porsche's revenue for the first three quarters was €26.86 billion, a 6% year-on-year decline [2] - Operating profit fell to €40 million, down from €4.035 billion in the same period last year, resulting in a sales return rate of 0.2%, compared to 14.1% last year [2][3] - The company reported a total of 212,500 vehicles sold, a 6% decrease, with significant declines in key markets: a 26% drop in China (32,000 units) and a 16% drop in Germany (22,500 units) [2] Strategic Adjustments - Porsche is undergoing structural downsizing, planning to cut approximately 1,900 jobs at its Stuttgart headquarters by 2029, alongside the expiration of contracts for 2,000 temporary employees [3] - The company announced delays in the launch of certain electric vehicle models and extended the lifecycle of several fuel and hybrid models, incurring an additional €2.7 billion in restructuring costs [2][3] Industry Context - Other luxury car manufacturers are also facing challenges, with Mercedes-Benz reporting a 12% decline in global sales for Q3 and a 9% drop for the first three quarters [4] - BMW has lowered its 2025 performance expectations due to ongoing sales weakness and increased tariff costs [4] Future Outlook - Porsche plans to increase prices in the U.S. market to offset tariff impacts, which have already cost the company €300 million in the first nine months of the year, with an expected total loss of €700 million for the year [5] - The company aims for a significant improvement in profitability starting in 2026, following a strategic realignment [5][6]