The 911 and the Boxster were the most popular models

A sharp rise in the demand for its cars sent profits racing ahead, the company said.

Sales of its most popular models rose almost 12% to about 54,600 cars.

"We're seeing strong worldwide demand for our 911 and Boxster cars," said chairman Wendelin Wiedeking.

The strong sales of its traditional models went a long way to offset the development costs of a sports utility vehicle, the Cayenne, which will be launched in the future.

Strong year ahead

The luxury car maker, which also sells engineering services to other automotive groups, predicted good earnings for the current year, even though the world economic slowdown would take its toll on Porsche's sales.

"Even if the number of cars sold this year doesn't match last year's level, as a result of the global economic uncertainty, our earnings will nevertheless benefit from the improved product mix," said Mr Wiedeking.

In the US, where this year's 911 Turbo model costs $115,000, sales fell sharply during October to 1,541 cars, down 14% from 1,721 in October 2000.

Earlier this month, the UK's Society of Motor Manufacturers and Traders observed a sharp rise in the sales of luxury cars in October.

Financial figures

Net profits for the group rose to 270.5m euros (�166.4: $238.3) from 210m euros a year earlier.

Pre-tax profits rose 36.5% to 592.4m euros.

Sales rose 21.8% to 4.44bn euros.

Porsche shares fell 1.02% in afternoon trading in Frankfurt.