Porsche CEO Admits Long Anticipated Fourth Model Line is Coming

"You can assume that we will secure our very strong profitability," Porsche AG CEO Wendelin Wiedeking commented during the

News from the Wednesday meeting forced Porsche shares up more than 3 percent to $661.85 USD. (Photo: Trevor Hofmann, Canadian Auto Press)

automaker's annual news conference in Stuttgart, Germany.

How did it do last year? Porsche posted an 8.3 percent increase in net profit to 810 million USD on sales of 8.4 billion USD, plus the brand's cash flow rose nearly 20 percent to $2.12 billion in its 2003/2004 fiscal year. Such news should keep shareholders happy, who experienced a 10 percent increase in earnings to $51.46 (adjusted via German DVFA method). What's more, news from the Wednesday meeting forced Porsche shares up more than 3 percent to $661.85 USD.

But how could a continuing low U.S. dollar and strong Euro scenario affect Porsche's long-term sales? After all, with 40

According to Porsche's chief financial officer Holger Haerter, the company is prepared to deal with a long term weakness in the American dollar, without a major impact to sticker price. (Photo: Trevor Hofmann, Canadian Auto Press)

percent of the nameplate's sales taking place in the U.S., the price of one of Stuttgart's supercars could rise significantly.

Not so, according to chief financial officer Holger Haerter. Porsche will continue hedging strategies on financial markets designed to protect it against currency swings he added during the meeting. Porsche can defend its profit margins "even in case of a long-term dollar weakness," he stated.

So what to do with all that money? Ask any accountant, spend it. That's exactly what Porsche has been doing, and on a highly anticipated fourth product line - not including the Carrera GT supercar.