US, China lust for luxury drives Porsche profits

German sports car manufacturer Porsche has reported rising sales in 2012 in its main markets the United States and China. The newest Porsche 911 model is becoming all the rage among its wealthy customers. Porsche revenues rose 29.3 percent to 6.76 billion euros ($8.31 billion) in the first six months of 2012, which had resulted in a 20.6 percent increase in its operating profit to 1.26 billion euros, the German luxury carmaker announced Friday. The firm, which is based in Stuttgart, was able to boost sales by 22.5 percent to a total of 68,940 vehicles. Porsche deliveries increased strongly in its main market, the United States. But US growth was once again surpassed by sales to customers in China. In China, Porsche deliveries grew by 38 percent to 15,638 cars, which is just about 1,000 vehicles fewer than in the United States. In Germany, which is Porsche's third largest market, the company sold 8,335 cars, up 24 percent. Highest demand was reported for the new version of the Porsche 911, which hit markets at the end of 2011 and recorded 42 percent higher sales than the previous 911 model in the first half of 2011. Deliveries also grew for the Panamera model - up 30.6 percent - and Porsche's Cayenne sports utility vehicle (SUV), sales of which grew by 24.7 percent. Noting that Porsche's premium sports cars met "highest customer demands," Chief Executive Matthias Müller said that the carmaker would "remain in the fast track" despite the economic slowdown in Europe. In a conference call, Porsche Chief Financial Officer Lutz Meschke announced that the company would aim for a 2012 operating profit "higher" than the 2.0 billion euros Porsche earned last year. This is good news for Germany's biggest carmaker Volkswagen (VW), which is set to fully incorporate Porsche into its company structure in August, under a deal that gives VW a 50.1 percent majority in the sports car manufacturer.