Porsche Automobil Holding expects to see a return to profit of between EUR1.4bn (US$1.61528bn) and EUR2.4bn for fiscal year 2016 after posting a group loss of EUR273m for 2015 as a result of the Volkswagen diesel emissions scandal.
Executive board chairman, Hans Dieter Potsch, speaking at annual press conference in Stuttgart, said the forecast was based on the current group structure of Porsche and in particular took into account the VW Group’s “expectations regarding its future development as well as the existing uncertainties with regard to possible special items in connection with the emissions issue”.
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Porsche said the group loss for fiscal year 2015 was “largely influenced by the profit/loss from its investment in Volkswagen accounted for at equity, which decreased from EUR3.44bn to [a EUR436m loss] year on year. The reason for the decrease in profit is the fall in the profit of the Volkswagen Group which was impacted in particular by the burdens from the emissions issue…”
Potsch said: “Porsche is unreservedly committed to its role as the Volkswagen Group’s long-term anchor shareholder. We underscored this clear commitment last September by acquiring a stake of 1.5% of Volkswagen ordinary shares from Suzuki. We are strongly convinced that the [group] has long-term potential for increasing value added and continues to work hard to rapidly and fully clarify the emissions issue.”
Potsch said Porsche had continued its search for investments to complement its core investment in Volkswagen and had again analysed several companies. Throughout the process, its investment experts were constantly in close contact with the VW group’s strategy and development experts.
“We continue to observe the entire automotive value chain and reserve the right to respond flexibly to any opportunities that arise,” said Potsch.
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By GlobalDataPorsche continues to be involved in legal disputes, the automaker acknowledged.
In its statement it said: “On the legal side, Porsche achieved important successes in the fiscal year 2015 and in the first months of 2016. In its verdict of 18 March 2016, the regional court of Stuttgart acquitted not only the former members of the executive board, Wendelin Wiedeking and Holger Harter, of all allegations of market manipulation but also Porsche, which was involved in the criminal proceeding as a secondary party. Before the verdict of the chamber responsible for economic offenses, hedge funds and private investors that had brought claims had already lost six times in a row before the respective civil courts.
“In March 2015, for example, the higher regional court of Stuttgart dismissed the appeal by 19 US hedge funds. The plaintiffs, who are claiming around EUR1.2bn from Porsche have filed a complaint against the higher regional court of Stuttgart’s refusal of leave to appeal with the federal court of justice. If the federal court of justice were to reject this complaint, the first claim for billions would be finally and conclusively dismissed. Porsche considers all allegations made in the ongoing civil proceedings to be without merit.”
