Porsche has announced a whopping EUR4.4bn pre-tax loss in its past fiscal year (ended July 31), a result that compares with an EUR8.6bn profit in the previous year.
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Porsche said the result reflected massive option writedowns associated with its failed attempt to gain control of Volkswagen stock.
The audacious takeover attempt failed earlier this year with Porsche forced to enter talks over a merged enterprise under VW’s leadership and CEO Wiedeking forced out. Porsche later sold many of the cash-settlement options to Qatar.
Porsche had warned earlier this year that a pre-tax loss for the 2008/09 fiscal year of up to EUR5bn was to be expected.
Porsche also said that it still shows a double-digit margin in operating profit and that ‘Porsche remains the most profitable automobile manufacturer in the world’.
Porsche did not disclose a net profit figure.
The Financial Times Deutschland reported that lenders to Porsche have agreed to provide EUR8.5bn of credit, thanks to the company’s new status as Volkswagen subsidiary.
Earlier this year, VW CEO Martin Winterkorn said there were new negotiations with the creditor banks. The lenders, which include Commerzbank, Deutsche Bank and LBBW, have now approved the new credit agreements, the FTD report said.
