This latest setback adds to the challenges faced by the Stuttgart-based automaker, which has been dealing with a declining operating margin, reduced sales in China, and a 40% drop in its share price over the past year. Following the announcement, Porsche shares fell 3% in Frankfurt.
The company stated that "the flooding of a production facility of an important European aluminum supplier" has resulted in "a significant supply shortage with regard to special aluminum alloys" used across "all vehicle series." Despite immediate countermeasures, the supply shortage is expected to impair production.
Last month's heavy rain in southern Germany led to severe flooding, prompting several areas in Bavaria and Baden-Württemberg, where much of the country's car industry is located, to declare a state of emergency.
Porsche now expects its operating profit margin to be between 14-15% this year, down from the previous forecast of 15-17%. Annual sales are projected to be €39bn-€40bn, lower than the earlier estimate of €40bn-€42bn.
Source: FT
