Pre-tax group profit at Porsche for the 2005/2006 fiscal year to 31 July rose to a record EUR2.11bn from EUR1.238bn a year ago, the company said on Wednesday following its supervisory board meeting today.
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The board also authorised an increase in Porsche’s Volkswagen shareholding to 29.9% and reappointed president and chief executive officer Wendelin Wiedeking to a fourth five-year term in the post.
“Especially pleasing is the fact that there was a stronger increase in profit from vehicle sales than in the respective turnover, primarily thanks to an improved model mix,” the maker of luxury sportscars and SUVs said in a statement announcing its fiscal year result.
The above-average surge in profit was, however, the result of one-off effects and special items, including the sale of CTS Fahrzeug-Dachsysteme for a one-off gain of EUR80.7m, profit from the group’s investment in Volkswagen (EUR203m) and earnings from share price hedging in connection with the purchase of VW shares which alone, Porsche noted, “made a contribution to profit easily of the order of triple digit millions”.
The group’s after-tax profit rose to EUR1.393bn from EUR0.779bn a year previously.
Earnings per share were EUR78.10, up from EUR44.68 a year ago.
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By GlobalDataPre-tax profit was EUR1.668bn compared with EUR872million.
The board has recommended a dividend of EUR5.94 per share plus special dividend of EUR3.0 per share “to balance high one-off earnings”.
The amount distributed to shareholders would increase to around EUR157m from EUR87m a year ago, a rise of 80%.
Separately, the supervisory board – in the absence of the three members of the Volkswagen supervisory board, Ferdinand Piëch, Wiedeking and Holger Haerter, authorised the executive board to increase the share in Volkswagen to a maximum 29.9%.
Both the executive and supervisory boards of Porsche assume that the VW law will be overturned at hearing at the European Court of Justice in Luxemburg on 12 December.
The Porsche share in Volkswagen, now 27.4%, has exceeded 25% and is thus subject to the notification procedure, Porsche said in a statement.
The five-year contract extension for Porsche president and CEO Wiedeking means he is about to enter his fourth five-term in the post.
