July 23 Reuters Porsche AG cut its sales and profit outlook on Tuesday due to an unexpected aluminium alloy supply shortage, sending the German company39;s shares down 4 to the bottom of Frankfurt39;s bluechip index.

Flooding at an unspecified European contractor has hurt supply of aluminium alloy, the luxury sports car maker said, affecting production of all its models and possibly leading to shutdowns for one or more vehicle series.

The alloy shortage also impacted the supply chains of German premium carmaker BMW and MercedesBenz, but both were able to find alternative suppliers. Spokespeople for BMW and MercedesBenz declined to give further details.

Porsche said the alloy supplier, which it did not name, had declared force majeure in writing, meaning it was unable to meet its contractual obligations due to events outside its control.

Body components made of aluminium are used in all vehicle series manufactured by Porsche, and reliance on the supplier has exposed the company to particular risk.

The aluminium alloy shortage adds to other challenges for Porsche in recent months, including software issues, product delays, supply chain problems and a sales slump in China.

39;BIBLICAL FLOOD39;

It39;s been a biblical flood that39;s wiped away the gains from the IPO, said Stephen Reitman of Bernstein Research.

He was referring to Porsche39;s initial public offering in September 2022, when shares closed at 82.50 euros in Germany39;s secondbiggest market debut. Shares…