Porsche AG (ETR:P911) shares hit reverse gear, falling 1.5% in early trading, after the luxury carmaker slashed another profitability target.
The German auto giant now expects a return on sales of 15% to 17%, down from the 19% goal set during its 2022 stock market debut.
Falling sales in China and weaker demand for electric cars in Europe have forced Porsche to repeatedly cut expectations. Supply chain issues and model delays have only added to the pressure.
Operating profit for 2024 dropped 23% to €5.64 billion, with revenue down slightly at €40.08 billion. Porsche is now shifting focus back to petrol and hybrid models, setting aside €800 million to develop new combustion engine cars.
The brand is replacing key executives and cutting jobs to regain momentum. Its U.S. business also faces risks from potential tariffs under President Trump. Despite the challenges, Porsche is sticking to its long-term goal of achieving a 20% margin.
The stock was off 60 cents at €38.99.