Porsche has cut its sales and profitability outlook due to an unexpected aluminium alloy supply shortage, sending shares in the German sports car maker 5% lower.
Flooding at an unnamed European contractor has hit supply of the alloy, Porsche said in a statement overnight, affecting production of all its models, adding it could possibly lead to shutdowns for one or more vehicle series.
Porsche AG now expects sales between €39 billion and €40 billion as a result of flooding in one of the aluminium suppliers' production facilities. It previously expected revenues between €40 billion and €42 billion.
The sports car maker said it is to be expected that the delays in the production and delivery of vehicles will not be fully compensated for in the rest of the year.
Porsche, majority-owned by Volkswagen, added that it now sees a return on sales between 14% and 15% for the year, down from its previous expectation of 15% to 17%.
The company faces muted demand in China, driving global deliveries down 7% in the first half of the year.
Porsche is also struggling with low electric vehicle sales this year. It watered down its EV ambitions earlier this week, citing customer demand and developments in the sector.
