(Reuters) -Porsche AG cut its sales and profitability outlook due to an unexpected aluminium alloy supply shortage, sending shares in the German sports car maker 5% lower on Tuesday.

Flooding at an unnamed European contractor has hit supply of the alloy, Porsche AG said in a statement overnight, affecting production of all its models, adding it could possibly lead to shutdowns for one or more vehicle series.

Parent holding company Porsche SE, which owns Volkswagen, confirmed its 2024 earnings forecast despite the warning from Porsche AG, whose biggest shareholder Volkswagen saw its shares slip 1.5% in premarket trade.

Porsche AG now expects sales between 39 billion and 40 billion euros ($43.56 billion) as a result of flooding in one of the aluminium suppliers' production facilities. It previously expected revenues between 40 billion and 42 billion euros.

The sports car maker said it is to be expected that the delays in the production and delivery of vehicles will not be fully compensated for in the rest 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 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. It watered down its EV ambitions on Monday, citing customer demand and developments in the sector.

($1 = 0.9183 euros)