Porsche sales accelerate

Porsche Automobil Holding SE's sports-car unit, known as Porsche AG, said Wednesday that operating profit in the first three months of its fiscal year jumped sharply on a steep rise in sales, marking the latest sign of a speedy recovery in demand for luxury cars.

"Porsche is continuing on a profitable growth course," Porsche brand chief Matthias Müller said in a statement, as the company said operating profit jumped to €395 million ($526 million) from €52 million a year earlier, on sales that were up 86% to 21,218 vehicles. Porsche's current fiscal year started Aug. 1 and will end on Dec. 31 as the company adjusts its accounting to the calendar year.

Porsche's revenue in the first three months rose 80% on the year to €2.06 billion.

"Due to the order intake world-wide in the past few months, we expect a good double-digit return on sales in the short fiscal year from August to December," said Lutz Meschke, Porsche brand's executive board member responsible for finance and procurement.

"With this current order situation, we also anticipate a good start to the new fiscal year 2011," he added.

Sales for the new-generation Cayenne sports-utility-vehicle more than doubled year-on-year to 10,292 vehicles. A revamped version of Porsche's best-selling vehicle was launched in May.

The new four-door Panamera coupe accounted for 5,778 sales, up 94% compared with the same period last year.

Porsche's 911 model posted a 20% sales rise to 3,130 cars, compared with an 18% increase to 2,018 vehicles for the company's Boxster model line. The Boxster roadster accounted for 1,089 vehicles and the Cayman version for 929 cars.

Porsche's highly profitable sports car operations are due to be integrated into Volkswagen AG as the company's 10th brand, along with nameplates such as Audi, Bentley and Skoda. Porsche initially tried to take over its much larger German peer, but its debt ballooned when credit markets tightened and the two companies now are pursuing a merger under VW's leadership.

Porsche Automobil Holding SE controls the company's 50.1% stake in Porsche Zwischenholding GmbH, which comprises the Porsche AG sports-car unit. Porsche Automobil Holding SE also has a 50.7% stake in Volkswagen. Last year, Volkswagen bought a 49.9% stake in Porsche's sports car unit as part of a complex merger between the two auto makers, and it has a call option to acquire the remaining 50.1% at a later stage.

The merger between Volkswagen and Porsche was initially due to be finalized next year, but last month Porsche said its holding company will remain a separate entity until tax and legal issues have been resolved.