AsianFin -- Luxury sports car manufacturer Porsche AG revealed on Tuesday that its operating margin plummeted to 8.6% in the first quarter, falling short of analysts' expectations.

The decline was primarily driven by sluggish demand in China and the impact of U.S. import tariffs.

"The macroeconomic environment is expected to remain tough. While we can't completely avoid these headwinds, we're leaving no stone unturned to mitigate their effects," said Jochen Breckner, Porsche's finance chief.

In the first quarter, Porsche's sales declined by 1.7% to €8.86 billion ($10.08 billion). Meanwhile, the company's operating profit nosedived 40.6% to €760 million. On Monday evening, Porsche revised down its full-year outlook in light of these challenging conditions.