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GERMANY: Porsche Automobil Holding nine-month profit up

By Graeme Roberts | 11 November 2014

Porsche Automobil Holding SE boosted group profit to EUR2.49bn euro in the nine months to 30 September 2014 compared with EUR1.99bn the previous year.

Profit from investments in Volkswagen AG were accounted for at equity of EUR2.65bn (EUR2.03bn).

The profit/loss from investments accounted for at equity contains profit contributions from the VW group that comprises profit/loss from ongoing equity accounting of EUR2.72bn (EUR2.17bn) as well as effects from the dilution of the share in capital and from the purchase price allocation.

In June 2014, VW AG resolved a capital increase through the issue of preference shares from authorised capital in exchange for cash contributions in which Porsche SE did not participate. As a result, the share of Porsche SE in the capital of VW AG fell from 32.2% to 31.5%. Porsche SE’s share in VW AG’s ordinary shares remained unchanged at about 50.7%. In the first nine months of 2014, the dilution had a total impact of EUR57m on the Porsche SE group, which affected profit or loss but not cash. The effects from the purchase price allocation amounted to a loss of EUR126m (EUR140m loss).

As of 30 September 2014, the equity of the Porsche SE group decreased to EUR29.86bn despite the profit for the period (31 December 2013: EUR30.47bn). The decrease largely results from an effect to be recognised directly in equity with no effect on the consolidated income statement in connection with VW AG’s voluntary public offer to the shareholders of Scania AB to tender all A and B shares in Scania to Volkswagen.

The Porsche SE group’s profit/loss will be largely dependent on the results of operations of the VW group. Based on the current group structure, also taking into account the dilution of Porsche SE’s share in the capital of Volkswagen AG, Porsche SE still expects a group profit for the year of between EUR2.2bn and EUR2.7bn for 2014.