BERLIN: Porsche lowered its sales forecast for the year and warned of impairments in production spurred by a supply shortage of aluminium alloys impacting various suppliers.

The automaker said it now expects sales between €39bil and €40bil amid flooding in one of the aluminium suppliers’ production facilities. It previously expected revenues between €40bil and €42bil.

The supply shortage has affected production in all car series that Porsche manufactures and could possibly lead to production shutdowns of one or more vehicle series, it said.

The automaker said it is to be expected that the delays in the production and delivery of vehicles will not be fully compensated for in the further course of the year.

Porsche, majority-owned by Volkswagen, added that it now sees a return on sales between 14% and 15% for the year, down from its previous expectation of 15% to 17%.

The announcement comes at a time when the company faces muted demand in China, driving global deliveries down 7% in the first half of the year.

Porsche is also struggling with low electric vehicle sales this year.

 - Reuters