Porsche cuts forecasts due to alloy shortage, shares fall
Updates Novalis statement
By Victoria Waldersee
July 23 (Reuters) -Porsche AG P911_p.DE cut its sales and profit outlook on Tuesday due to an unexpected aluminium alloy supply shortage, sending the German company's shares down 4% to the bottom of Frankfurt's blue-chip index.
Flooding at an unspecified European contractor has hurt supply of aluminium alloy, the luxury sports car maker said, affecting production of all its models and possibly leading to shutdowns for one or more vehicle series.
Porsche said the alloy supplier, which it did not name, had declared force majeure in writing, meaning it was unable to meet its contractual obligations due to events outside its control.
Novelis, a subsidiary of Hindalco Industries HALC.NS and aluminium supplier to a joint venture co-owned by Porsche, said it had notified automotive customers of a force majeure event that had forced it to shut down its plant in late June.
The alloy shortage also impacted the supply chains of German premium carmakers BMW BMWG.DE and Mercedes-Benz MBGn.DE, but both were able to find alternative suppliers. Spokespeople for BMW and Mercedes-Benz declined to give further details.
Aluminium maker Constellium CSTM.N, which is U.S.-listed but headquartered in France, said it did not supply Porsche from its facility in Switzerland.
Separately, the company said in its earnings statement on Tuesday it did not know when it would restart production at its Valais facilities following the flooding in late June.
Norsk Hydro NHY.OL CEO Eivind Kallevik declined to comment when asked by Reuters whether the Norwegian aluminium producer could increase output to make up for the shortfall or was receiving enquiries from customers for more product.
All three companies name Porsche or firms affiliated to the automaker among their customers.
Car body components made of aluminium are used in all vehicle series manufactured by Porsche, and reliance on the supplier has exposed the company to particular risk.
The aluminium alloy shortage adds to other challenges for Porsche in recent months, including software issues, product delays, supply chain problems and a sales slump in China.
'BIBLICAL FLOOD' ERASES IPO GAINS
"It's been a biblical flood that's wiped away the gains from the IPO," said Stephen Reitman of Bernstein Research.
He was referring to Porsche's initial public offering in September 2022, when its shares surged to close at 82.50 euros in Germany's second-biggest market debut. The shares were down 4.1% at 69.66 euros on Tuesday.
Bernstein analysts said the flooding occurred at a Swiss supplier, and would lead to the production loss of at least 10,000-17,400 vehicles in the second half of 2024.
At the high end, that figure is equivalent to over 11% of Porsche's first-half deliveries.
Porsche SE PSHG_p.DE, the holding firm of the Porsche and Piech families that control Volkswagen VOWG_p.DE and holds a blocking minority in Porsche AG, confirmed its 2024 earnings forecast despite the alloy supplier's warning.
RESULTS DUE ON WEDNESDAY
Porsche AG now expects sales between 39 billion and 40 billion euros ($44 billion) as a result of the flooding in the aluminium supplier's production facility. It previously expected revenue between 40 billion and 42 billion euros.
The company said it was to be expected that the delays in the production and delivery of vehicles would not be fully compensated for in the rest of the year.
Porsche now sees a return on sales between 14% and 15% for the year, down from its previous expectation of 15% to 17%.
The company reports first-half results on Wednesday.
It faces muted demand in China, driving global deliveries down 7% in the first half of the year.
Porsche is also struggling with low electric vehicle sales this year. It watered down its EV ambitions on Monday, citing customer demand and developments in the sector.
($1 = 0.9183 euros)
Porsche shares have fallen since listing https://tmsnrt.rs/3Wj1t6V
Reporting by Utkarsh Shetti, Kanjyik Ghosh, Andrey Sychev, Christoph Steitz, Nick Carey, Alexander Huebner and Jesus Calero; Editing by Christopher Cushing, Alexander Smith, Bernadette Baum and Emelia Sithole-Matarise
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.