German luxury sports car manufacturer Porsche will leave the main German stock index DAX after less than three years. According to the DPA agency, this was announced by the stock exchange company Deutsche Börse. The removal from the DAX index is another blow to Porsche, which is struggling with declining profits and sales as well as the negative effects of US President Donald Trump’s tariff policy.
Porsche loses place in DAX index amid steep share price decline
Pharmaceutical and laboratory equipment supplier Sartorius will also leave the DAX index. The companies removed from the index will be replaced by Scout24, an online real estate platform operator, and Gea, a supplier of equipment for the food and pharmaceutical industries.
Porsche entered the Frankfurt Stock Exchange in September 2022 and became part of the DAX index a few months later. Even after going public, Volkswagen, which also owns Škoda Auto, remained the majority owner of Porsche. Porsche shares entered the stock market with an issue price of €82.5 per share. In the following months, the share price climbed to almost €120, but currently stands at only around €45, according to the DPA news agency.
Porsche profit plunges as CEO Blume faces criticism and possible exit
Porsche’s operating profit fell by two-thirds year-on-year to €1 billion in the first half of this year. Revenue fell by almost seven percent to €18.2 billion. Porsche CEO Oliver Blume said in July that the company is struggling with falling demand in China, increased tariffs on car imports to the United States, and the unexpectedly slow pace of customer transition to electric cars.
Blume is also the head of the entire Volkswagen Group. The fact that Blume manages the entire group and the Porsche brand itself is often the target of criticism, for example from shareholders. The German newspaper WirtschaftsWoche reported last week that Blume will step down from the management of the Porsche brand.
Source: Reuters
