Porsche has held onto its crown as the world's most profitable car maker, after reporting a surge in earnings during the second half of 2002.

The German firm made a second-half pre-tax profit of 185m euros (£123m; $199m), up by 18% year on year.

At the same time, sales were up almost 20%, reflecting a rash of new product launches from Porsche in the past year.

Encouragingly for the firm's strategy, the sales figure indicated that it was selling more premium-priced vehicles, a key target as it seeks to phase out some of its more established models.

Big ambitions

Porsche is in the process of shifting its once-tight focus on pure sports cars.

Last year, it launched its first four-wheel-drive vehicle, the Cayenne, and expressed the hope that it would become its main earner in years to come.

In the meantime, its much older 911 and Boxster sports cars are selling weakly.

The latest figures indicate that Porsche is having some success at shifting customers to more high-priced vehicles.

But some analysts are concerned that expectations for the Cayenne may too high, pointing out that the key US market seems to be tiring of the bigger four-wheel drives.