Wednesday, November 14, 2007
Porsche profits raise eyebrows
Porsche earns three times as much money from its investments as it does from selling cars, according to the Financial Times.
The report prompted accusations that the company is conducting business more as a hedge fund than a carmaker.
Porsche said that €3.6bn (£2.5bn) of its €5.8bn pre-tax profit in the year to July was from share options.
Without the profit made from revaluing its stake in Volkswagen and its share in VW's profits, the German luxury carmaker made €1.05bn from the car manufacturing section of its business.
It appears this trend may continue, if speculation that Porsche plans to increase its stake in VW is correct.
Porsche denied it was acting as a hedge fund.
DATED: 14.11.07
FEED: MT
