Porsche on Friday posted a drop in its operating profits as the debt-ridden German sports carmaker said a steep fall in sales and higher refinancing costs have weighed on its earnings in the first nine months of its fiscal year.

The maker of the famous 911 sports car said in a statement that it is obliged to make under European Union rules that its pre-tax profit has been additionally burdened by costs for building is new Panamera sedan and a hybrid engine for its Cayenne model.