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Q3 operating loss 966 million euros

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Analysts had forecast a 611 million euro loss

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CFO warns 'large-scale' solutions needed in labour talks

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Outlook maintained

(Adds CFO on job cuts, outlook)

By Rachel More

BERLIN, Oct 24 (Reuters) - Porsche swung to a bigger

than expected operating loss in the third quarter, it said on

Friday, plunging the German sports car maker deeper into crisis

as it slows a shift to electric vehicles and battles to stem

sinking sales in top market China.

The news highlights how the automaker, pitched as the

epitome of German engineering prowess when it went public in

2022, has been thrown off course in recent months, most notably

due to U.S. import tariffs and a relentless price war in China.

The group's operating loss stood at 966 million euros ($1.1

billion) in the third quarter, down from a 974 million euro

profit in the same period last year, hit by expenses to cover a

major rollback on its EV expansion announced last month.

Analysts polled by Visible Alpha had expected an operating

loss of 611 million euros in the July-to-September period.

HITTING 'TROUGH' IN 2025, HOPEFUL FOR 2026

"We expect 2025 to be the trough that precedes a noticeable

improvement for Porsche from 2026 onwards," finance chief Jochen

Breckner said, warning that "large-scale solutions" were needed

in current restructuring talks with labour representatives.

Porsche CEO Oliver Blume, who is also CEO at

parent Volkswagen, will hand over the top job at

Porsche to ex-McLaren boss Michael Leiters at the start of 2026,

the group said last week, following long-standing investor

criticism over the dual role.

Leiters is set to inherit one of the biggest crises in

Europe's beleaguered auto sector.

POSSIBILITY OF FURTHER JOB CUTS

"We have to assume that the general market conditions will

not improve in the foreseeable future," Breckner said, amid

negotiations about further job cuts.

Porsche already plans to cut 1,900 jobs in the coming years,

on top of 2,000 layoffs for temporary workers this year, with a

second package of measures expected by the end of the year.

Following a series of profit warnings this year, the

carmaker maintained its guidance for 2025 on Friday, forecasting

a return on sales of up to 2% - down from 14% last year.

For the whole year, Porsche expects a 3.1 billion euro hit

to earnings from its EV strategy overhaul, a decision to scrap

in-house battery production and restructuring costs.

($1 = 0.8575 euros)