Porsche Automobil Holding SE has booked a first half 2012 profit of EUR1.15bn, up from EUR149m the previous year. This is primarily from investments in Porsche Zwischenholding and Volkswagen AG.
There was a non-cash special loss from the adjustment of the valuation of the put and call options for the shares in Porsche Zwischenholding remaining with Porsche SE at 30 June 2012 of EUR1.38bn.
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The financial result, essentially income and expenses from loans, was a loss of EUR26m compared to a EUR129m loss in the first half of 2011 due mainly to the partial repayment of liabilities to banks and refinancing at more favourable terms in fiscal 2011.
Net liquidity improved by a further EUR56m in the second quarter to minus EUR1.45bn on 30 June 2012.
Porsche Zwischenholding boosted unit sales 22.5% to 68,940 vehicles in the first half and revenue rose 29.3% to EUR6.76bn. Operating profit was EUR1.26bn, up 20.6%. Volkswagen Group increased unit sales 12.4% to 4,644,097 vehicles for revenue of EUR95.38bn (up 22.6%) and an operating profit up 6.7% to EUR6.49bn.
Porsche SE and Volkswagen AG plan an integrated automotive group from tomorrow, 1 August.
Porsche SE will contribute its holding business operations including its 50.1% investment in Porsche’s operating business, i.e., its shareholding in the Porsche Zwischenholding GmbH group, to Volkswagen AG. However, Porsche SE will retain a shareholding of 32.2% in the total capital of Volkswagen AG. The execution of the transaction will make Volkswagen AG the sole shareholder of Porsche’s operating business. Porsche SE will receive a cash amount of some EUR4.46bn from the transaction, as well as one new ordinary Volkswagen AG share.
Due to the planned contribution, the investment in Porsche Zwischenholding GmbH will cease to be accounted for at equity in the consolidated financial statements of Porsche SE as of July 2012. However, since Porsche SE will continue to hold its investment in Volkswagen AG, it will, in proportion to its share in total capital, indirectly benefit from the results of operations of the Porsche Zwischenholding GmbH group and from the merger.
The contribution transaction will result in a one-time positive effect on earnings, expected to be around EUR6bn to EUR7bn, in the consolidated financial statements of Porsche SE.
Factoring in this one-time positive effect on earnings, Porsche SE expects a high single-digit billion-euro profit for 2012.
