{"id":658521,"date":"2026-10-27T11:36:10","date_gmt":"2026-10-27T11:36:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/658521\/"},"modified":"2026-10-27T11:36:10","modified_gmt":"2026-10-27T11:36:10","slug":"porsche-cuts-china-exposure-as-profit-rebounds","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/658521\/","title":{"rendered":"Porsche cuts China exposure as profit rebounds"},"content":{"rendered":"

Michael Leiters, CEO of the Stuttgart-based sports car manufacturer Porsche, stands next to a Porsche 911 GT3 SC at the Porsche Development Center.<\/p>\n

Bernd Wei\u00dfbrod | Picture Alliance | Getty Images<\/p>\n

German sports carmaker Porsche<\/a> said it has significantly reduced its exposure to China as operating profit rebounded in the first nine months of the year despite falling revenue and vehicle deliveries.<\/p>\n

The Volkswagen-owned company published its third-quarter earnings on Tuesday, announcing that operating profit was 1.74 billion euros ($1.94 billion) in the first nine months of 2026, compared with 40 million euros at the same time last year, when it booked around 2.7 billion euros in strategic restructuring costs.<\/p>\n

Meanwhile, sales revenue fell 5.9% to 25.28 billion euros, while deliveries continued to decline, down 16% to 178,532. North America remained Porsche’s largest sales region by volume.<\/p>\n

China has historically been an important market for German luxury automakers, but they have struggled with growing competition from domestic brands, particularly in electric vehicles.<\/p>\n

Porsche’s China sales have fallen sharply in recent years amid intensifying competition from brands such as BYD, Geely and Xiaomi.<\/p>\n

“Our geographically balanced sales footprint continues to provide resilience across different markets,” Jochen Breckner, Porsche’s chief financial officer, said in the earnings webcast on Tuesday.<\/p>\n

“As you know, we have significantly reduced our exposure to China. This makes our overall business less dependent on developments from this challenging market environment.” <\/p>\n

Porsche shares were last seen trading 2.3% higher.<\/p>\n

\"Electric<\/a>America shut out Chinese EVs. Britain welcomed them \u2014 and now faces a difficult choice<\/a><\/p>\n

Porsche is also cutting thousands of jobs as part of a broader restructuring aimed at reducing costs and responding to weaker demand.<\/p>\n

Citi: Porsche’s underlying profit outpaces German luxury peers<\/p>\n

Citi analysts said in a note Tuesday that Porsche’s first-nine-month results were as expected, despite challenges including China.<\/p>\n

“Despite challenging conditions, including exceptionally low deliveries, higher costs, and higher battery electric vehicle deliveries, Porsche’s underlying EBIT remains very resilient and ahead of German premium peers,” the analysts said.<\/p>\n

They added that Porsche has laid out a plan to return to double-digit underlying operating profit margins, with recovery expected to start in 2028, and net cash flow expected to rebound to above its IPO levels by 2031. <\/p>\n

“Whilst FY27 will remain a trough year, we still see a solid, well-supported and credible multi-year EBIT and net cash recovery starting financial year 2028 – unlike many peers,” the analysts said.<\/p>\n","protected":false},"excerpt":{"rendered":"Michael Leiters, CEO of the Stuttgart-based sports car manufacturer Porsche, stands next to a Porsche 911 GT3 SC…\n","protected":false},"author":2,"featured_media":658522,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[7897,150022,941,354,114,357,1657,3313,85,46,190,125],"class_list":["post-658521","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-autos","tag-boyd-gaming-corp","tag-breaking-news-markets","tag-breaking-news-technology","tag-business","tag-business-news","tag-china","tag-earnings","tag-il","tag-israel","tag-markets","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/658521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=658521"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/658521\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/658522"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=658521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=658521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=658521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}