[R]9:00AM New York—Porsche reported revenue increase of 0.7% in ten months to May 31.[/R]

Porsche Automobil Holdings SE, the German sports carmaker reported a revenue increase of 0.7% to €6.02 billion during the first ten months to May 31 on higher car sales.

The company, which manufactures the 911 sports car and Cayenne, said it would meet its earnings forecast in the current fiscal year in spite of the slower consumer expenditure and unfavourable economic conditions.

Porsche confirmed a full-year 2008 sales target at least equal to that of the previous year, which rose to €7.37 billion. For the ten months, Porsche sold 82 025 vehicles up 3.1% on prior year.

The Cayenne brand sold more vehicles at 37 258, which was 46.5% higher on 2007. Sales from the Cayenne GTS model, which went to the market in February 2008, accounted for 4,847 vehicles.

Porsche’s classic 911 sports car sales declined 14.9% to 26,614 units from a year ago. This also included the RS Spyder racing car.

Sales of the Boxster series, including the Cayman models fell 20.4% to 18,149 vehicles. Compared to the previous-year period, sales of the Roadster Boxster were down 13.6% to 7,983.

Cayman sold 10, 166 vehicles, 25.1% lower from 13,568 units sold in the comparable in fiscal 2006/07.

Without giving figures, Porsche said cash and cash equivalents, including securities rose during the review period while liabilities bulged due to a long-term loan of €10 billion.

Non-current assets increased on higher expenditure at Gran Turismo Panamera, the second generation of the latest 911 series and the inclusion of the pro rata net profit of Volkswagen AG, where it holds 22.5%. The company expects to spend up to €150 million on the plant.

Segment Analysis

Porsche has not been immune to the morbid developments in the world economy such as rising oil prices, slower economic growth and the prospect of shrinkage in the U.S economy.

For the ten months, the company said unit sales in the U.S and Canada gained 2.1% to 28,267 vehicles. Growth in this region was affected by reduced consumer expenditure due to the credit crisis.

Porsche said it “had anyway long been prepared for a possible crisis scenario in the US and had cut back inventories there some time ago.”

Sales in German fell 5.3% to 10,448 vehicles.

Solid growth in future Middle and Far East countries helped offset weaker sales in core markets of German and the US.

The company said world sales rose 6.1% to 43,310 vehicles with growth in China alone of 152.2% to 6,539 units.

Porsche delivered 87,164 vehicles in the ten months, up 4% from the previous year. Production of the 911 brand in German fell 14.8% to 27,665 vehicles.

The Porsche plant in Leipzig, which produces the Cayenne series, delivered 39,886 vehicles, 42.5% higher on 2006/2007.