Porsche has revised its sales and profitability outlook downward due to an unexpected shortage of aluminium alloy, resulting in a 5% drop in its shares on Tuesday. Flooding at an unnamed European contractor has disrupted the supply of the alloy, affecting production across all Porsche models and potentially leading to shutdowns for some vehicle series.
Despite the supply chain issue, parent company Porsche SE, which owns Volkswagen, confirmed its 2024 earnings forecast. Volkswagen, Porsche AG’s largest shareholder, saw a 1.5% dip in premarket trading.
Porsche now projects sales between 39 billion and 40 billion euros ($43.56 billion), down from its previous forecast of 40 billion to 42 billion euros. The company acknowledged that the production and delivery delays are unlikely to be fully compensated for within the year.
The sports car maker also adjusted its expected return on sales to between 14% and 15%, down from the prior estimate of 15% to 17%. This adjustment comes amid muted demand in China, which led to a 7% decline in global deliveries during the first half of the year.
Additionally, Porsche is grappling with lower-than-expected electric vehicle (EV) sales. The company scaled back its EV ambitions on Monday, citing customer demand and sector developments. 
