F&I Management & Training

Porsche has announced a massive increase in profits in the six months to the end of January, in large part due to its stake in Volkswagen Group. The German luxury carmaker's net profits for the period were 5.5bn euros (£5.1bn; $7.3bn), four times higher than a year earlier. The increased profits were due to a big rise in the price of shares in VW, in which Porsche owns a 50% holding. The strong performance of VW helped to mask a drop in car sales of a quarter. "The principal reason for this dramatic increase is the positive contribution to profits from changes in the stock exchange price of VW shares," Porsche said. The share price rises contributed 6.84bn euros to the company's pre-tax profit of 7.34bn euros. Falling sales Porsche pointed out that if the VW shares fell in value, the profit figure could fall. "The amount [contributed by VW shares] could decrease again and could, by the end of the business year, be less than the half-year amount," it said. Turnover fell by 12.8% over the six months, to 3.04bn euros. Sales fell by 26.7% to 34,266 vehicles. The iconic 911 sports car sold 13,543 units, down from 16,261 a year earlier. The Cayenne sports utility vehicle sold 16,773, down from 20,638. Last week, Porsche secured a 10bn euro loan to increase its stake in VW.

DATED: 31.03.09

FEED: AW