‘Special items’ totalling EUR2.2bn on Volkswagen AG’s first half 2016 books, due to costs associated with the diesel emissions scandal, would have a “negative effect” on fully year group results for Porsche SE, the Stuttgart-based sports car and luxury SUV maker said, adding its full year, group profit after tax forecast nonetheless remained unchanged.

Wolfsburg-based Volkswagen AG, of which Porsche Automobil Holding SE holds 30.8%, said previously its operating profit – before special items – for the first six months of 2016 reached EUR7.5bn despite the ongoing economic impact from the “diesel issue”. It said it had provided for a EUR2.2bn charge to cover further legal risks, predominately in North America, in its first half year results. This reduced Volkswagen Group operating profit to EUR5.3bn euro.

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Ironically, VW added the pre-special items EUR7.5bn operating profit – a key measure of how well an automaker is doing at its core business of making and selling cars – was “significantly higher than market expectations for the first half of 2016”.

Taking the expected (likely proportionate to its 31% stake), but so far unspecified, amount into account, Porsche SE said, based on “present knowledge”, it still expects a group profit after tax for fiscal [calendar] year 2016 of between EUR1.4bn and EUR2.4bn – unchanged from its previous forecast.

“This forecast is based on the current group structure of Porsche SE. In particular, it takes into account the Volkswagen Group’s expectations regarding its future development as well as the existing uncertainties with regard to possible special items in connection with the diesel issue. Due to these constraints, Porsche SE’s forecast is inevitably subject to estimation risks,” the automaker said in a statement.

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It will publish its half year report on 1 August 2016.

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