Stuttgart, Jan 25: Sportscar maker Porsche AG said on Friday it was continuing a record-breaking profit streak, turning in a strong financial performance in the first half of its business year.Speaking at the company's annual shareholder meeting, Porsche chairman Wendelin Wiedeking said group profit in the first six months of 1997-98 was expected to rise 69 per cent to 65 million marks ($36.1 million).
Wiedeking said the first-half results were not yet finalised.
The figures come as further evidence of unending demand for its two models, the 911 and Boxster, which resulted in a record 139.4 million mark net profit in 1996-97.
Speaking of the cars, Wiedeking said they had "laid the fundamental basis for lasting, solid core business".
Sales in the six months ending January 31 were likely to increase 9.6 per cent to 1.95 billion marks while unit sales were expected to rise about 10 per cent to 14,900 cars, Wiedeking said.
The Boxster, which had its first full production year in 1997, has seenwaiting periods run to one year. The company has likewise seen strong early demand for its updated, water-cooled 911 model which debuted at the Frankfurt car show last autumn.
With Porsche's two models selling faster than the company can make them, the carmaker is considering adding a third model to its line, a sport utility vehicle (SUV).
Wiedeking told the shareholders its studies have shown good worldwide demand for SUVs and the Porsche name would carry a high level of credibility."A decision, either positive or negative, will be made shortly and an announcement will then be made," he said.
The Porsche chairman added that although the company was considering making an SUV, it would continue to see its 911 and Boxster models as its primary business.
`At the Detroit car show earlier this month, Wiedeking declined to say specifically what kind of car the company had in mind, but said it would reflect Porsche's belief that most sport utility cars were used primarily on paved highways.
Porsche hassaid it was talking with several partners about jointly developing the car.
Copyright(c)1998 Indian Express Newspapers (Bombay) Ltd.
