Porsche has reported pre-tax earnings of almost EUR6bn for its 2006/7 financial year (to end July 2007).

 

The record figure of EUR 5.857bn was up from EUR 2.110bn a year ago, largely due to earnings from stock in the Volkswagen group. Earnings from stock option transations contributed EUR 3.593bn to the overall result, while EUR702.4bn came from earnings from a 22.5% share held at the end of the business year, and EUR520.8m came from a re-valuation of Porsche's share.

 

The earnings from the VW shares offset negative factors in Porsche's core business, which include development expenditure for the Panamera and for the hybrid drivetrain for the Cayenne, which is put at several hundred million euros. Another negative factor was the weaker level of hedging rates versus the US dollar.

 

The group's net earnings increased to EUR4.242bn (previous year: 1.393bn).

 

The annual accounts were approved by the Porsche supervisory board yesterday. This approval is necessary

for entering Porsche Automobil Holding SE in the trade register.

 

Porsche announced in September that it had set turnover and sales records during the 2006/07 financial year. Sales were 97,515 units, up from 96,794 in the previous year. Turnover rose 3.4% to EUR 7.4bn.