From Victoria Waldersee
Berlin (Reuters) – Porsche AG shares fell 7%Friday, which is the biggest fall among European companies and the worst day since the shares market, after a car manufacturer warned that the costs of new models and costs related to batteries will alleviate 2025 profit.
The Porsche shocked investors late Thursday that he expects a profit margin of only 10-12% this year, below the expectation of analysts of 14.8% and a well under a medium-sized goal of 17-19%.
The company will take $ 800 million ($ 832 million) a profit hit to start new combustion engines and hybrid Plug-In hybrid models, the latest car manufacturer that will turn to the engine of the combustion engine in the middle of a small demand for EVs and intense competition in China from local rivals.
“We see this as the latest P911 recording to prove that this job can be revealed before they lose more trust of long -term shareholders,” analysts said in the note of Deutsche Bank.
Porsche, who has been larger than his home company Volkswagen AG at his 2022 Stock Exchange, has since fell from Grace, struggling to get out of the EV -A field and suffer from poor demand in China, its top market.
The shares decreased 27% in 2024, and its market capitalization halved from its top since May 2023. Out of just under 110 billion euros.
‘Main concern’
The margin forecast was the “main concern” for the car manufacturer, Bernstein said analyst for research by Stephen Reitman, adding that “febrile” investors would expect further explanation from management on the eve of year -round results on March 12.
The company said last week that it was in conversations to end the contracts of its main financial clerk and the boss sells early, after both came under a lot of criticism for poor company performance and poor shares’ prices.
While 75% of the basic capital of a car manufacturer owned by Volkswagen AG, just over 12.5% holds Porsche, an investment company controlled by the Piech and Porsche family, which is also the Volkswagen’s chief shareholder.
Porsche said on Thursday that he expects damage to his stake in Porsche AG, almost twice the size of his forecast for December, reaching 2.5 billion euros to 3.5 billion euros.
Holding also said that the minutes were expected to be related to Volkswagen, which was subjected to higher cost reductions, according to the upper limit of its prediction of 7 billion to 20 billion euros.
($ 1 = 0.9619 euros)
(Reporting by reporting Victoria Waldersee and Ozan Ergenay. Mount Ludwig Burger and Mark Potter)
