FRANKFURT, April 29 (Reuters) - Luxury sportscar maker

Porsche AG on Tuesday said its operating margin fell

to 8.6% in the first quarter, below analyst estimates, hit by

weaker demand in China as well as U.S. import tariffs.

"The macroeconomic situation will remain challenging. We

can't completely escape this, but we are doing everything within

our power to counteract it," finance chief Jochen Breckner said.

First-quarter sales fell 1.7% to 8.86 billion euros ($10.08

billion), while the group's operating profit plunged 40.6% to

0.76 billion, said Porsche, which late on Monday cut its

full-year outlook.

Analysts in an LSEG poll had, on average, expected an

operating margin of 9.8% in the first quarter.

($1 = 0.8790 euros)

($1 = 0.8789 euros)