Porsche Makes a strong case that it shares the allure of the best luxury brands: a growing market, high margins and economic flexibility. But the German sports-car maker also comes with a common weakness of luxury: a powerful controlling shareholder.
On Monday, Dr. Ing. hc F. Porsche, as the company is formally known, said it would grow revenue by up to 18% this year and an operating profit margin of more than 20% over the long term, compared to 16% last year will receive. Investors want this kind of commitment Prior to the company’s initial public offering, scheduled for the fourth quarter. A margin of more than 20% would put Porsche in a special league, slightly behind the highly valued Ferrari.