Porsche's growth continues

.December 10, 2003
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Porsche's growth continues

New turnover and profit records in the 2002/03 fiscal year

Stuttgart - In a difficult economic climate, Dr. Ing. h.c. F. Porsche AG of Stuttgart, Germany remained on its growth path in the 2002/03 fiscal year that ended on July 31, 2003. The already high financial reference figures for the previous fiscal year were once again exceeded. Group turnover rose by 14.9 percent to 5.58 billion Euro, and with pre-tax results up by 12.6 percent to 933.0 million Euro, Porsche has achieved the best results in its corporate history - despite the substantial costs incurred for the start of Cayenne production and this model's worldwide market launch. The Group's annual surplus (after-tax result) rose by 22.3 percent to 565.0 million Euro. At 35.20 Euro, earnings per share again significantly exceeded the previous year's figure of 27.80 Euro.

Significant increase in turnover thanks to the Cayenne

In the 2002/03 fiscal year, Group sales rose by 23.2 percent to 66,803 units. With the Porsche Cayenne, which has been introduced successively to international markets since December 2002, the decline in the sports car sector was more than offset. Within only eight months, 20,603 units of this sports off-road model were sold. Although sales of the 911 model line fell by 14.1 percent to 27,789 units, this was nonetheless the second-highest figure ever recorded. The trend toward a higher-value model mix within this model line continued. Sales of Boxster models went down by 15.9 percent to 18,411 units. Although the Boxster suffered from the general decline in the roadster segment, this can still be regarded as a satisfactory sales figure for a model in its seventh year of production.

In North America - Porsche's largest market - sales rose by 25.6 percent to 29,024 units, with the Cayenne accounting for 10,151 units. All other export markets recorded even better growth rates, with an overall increase of 30.5 percent to 23,883 units. Contrary to the general negative market trend, Porsche also enjoyed growth on the German market, where sales rose by 8.4 percent to 13,896 units.

Flexible adjustments to production

Following the start of Cayenne production, the number of cars manufactured went up significantly. Including 18,031 Boxsters assembled in Finland, Porsche produced a total of 73,284 cars - an increase of 33.1 percent. The company responded rapidly and flexibly to the weakening sports car market situation. Overtime was gradually reduced at Porsche's Stuttgart location in accordance with an internal staff agreement. Production of the classic 911 at the main plant in Zuffenhausen was cut back by 10.6 percent to 29,564 units, but Cayenne production in Leipzig continued at maximum output, with 24,925 units of this sports off-road vehicle built.

Number of employees rises again

Although the climate on the job market remains poor, Porsche again created a number of new jobs. At the end of the review year the Group employed 10,699 people, an increase of 5.5 percent from 10,143 in the previous year. Of this total, 8,078 were employed by Porsche AG. Personnel resources were mainly strengthened for Cayenne and Carrera GT production at Porsche's Leipzig plant, in the after-sales service area, at the development companies and for engine production in Stuttgart.

Higher dividend

The shareholders' general meeting to be held on January 23, 2004 in Leipzig will be asked to approve dividend payments of 3.34 Euro per share to common-stock holders for the 2002/03 fiscal year (basic dividend in the previous year: 2.94 Euro) and 3.40 Euro to preferred stock holders (basic dividend in the previous year: 3.00 Euro). The sum distributed as dividends on common and preferred stock will thus total 58.975 million Euro. Based on the previous year's basic dividend - in other words disregarding the once-only extraordinary dividend paid for the 2001/02 fiscal year - total dividend expenditure will go up by 13.5 percent.

Promising start to the current fiscal year

The company remained on its growth course in the first four months of the current 2003/04 fiscal year. According to preliminary figures for the period from August 1 to November 30, 2003, Group turnover rose to 1.92 billion Euro, an increase of 46.6 percent compared to the same period of the previous year. Sales rose by 49.6 percent to 22.016 units, with 11,157 units accounted for by the Cayenne model line and 7,226 units by the classic 911 models (minus 13,8 percent). From the Boxster model line, 3,633 units were sold (minus 39.6 percent). In the first four months of the current fiscal year production rose by 54.6 percent to 26,175 units.

Porsche has confident expectations of the current 2003/04 fiscal year. The newly introduced model variants including the Carrera 4S Cabriolet, the 911 Turbo Cabriolet, the GT3 RS and the special "40th anniversary 911" edition are adding distinct new stimuli to the 911 model line. With the "550 Spyder" special edition, to be premiered at the Detroit Motor Show in January 2004, Porsche will give further impetus to its Boxster model line. The upper end of the model program has now been completed by the new Carrera GT high-performance sports car. The Cayenne model line in particular, to which an entry-level version has been added, will contribute further to the growth of Porsche sales and turnover, and the company expects to maintain its high earnings level.

(Dec 03, 2003)

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