Porsche Unveils Record Results for 2007-2008

But shares plummet

Shares in Porsche plunged in midday trading on Oct. 1 after it published record results for its 2007-2008 fiscal year but issued a cautious outlook.

Stock in Porsche lost 9.35% to 68.71 euros on the Frankfurt stock exchange, even though sales had gained an estimated 1.3% to 7.46 billion euros (US$10.5 billion) during the fiscal year that ended on July 31.

Vehicle deliveries rose by 1.2% to 98,652 units, the company reported.

Porsche declined to issue an outlook for the 2008-2009 exercise however, saying that "in the current economic situation, it is difficult to give a reliable forecast for the exercise now underway."

The next jump in growth was expected during the 2009-2010 fiscal year, the company said, owing to the launch of its four-door Panamera model.

Porsche added that it would stick with its strategy of producing fewer cars if demand slumped owing to the financial crisis.

In the past year, the German group has seen sales fall sharply in its domestic market and the United States, although they have grown in China and the Middle East.

Copyright Agence France-Presse, 2008

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