Porsche triples fiscal year earnings

Source: Manufacturing Digital

Date :13/11/2007 10:36:43

German luxury sports car group Porsche has more than tripled its annual net profit on stock market operations, helped by the revaluation of its 22 percent stake in Volkswagen AG.

In its 2006/07 fiscal year, Porsche, the world’s most profitable car maker, posted a net profit of €4.2 billion ($7 billion), up from €1.4 billion from last year.

Pretax profit soared to €5.9 billion in the twelve months through July 31, from €2.1 billion a year earlier, Porsche said in a statement.

Earnings from the revaluation of the 22.5 percent stake the company held at the end of its fiscal year came to €702.4 million, while stock options added €3.593 billion, the company said.

Improving tradability

The Stuttgart-based automaker saw strong results from its core business compared with last year, excluding factors like a “high three-digit million euro development expenditure” for Porsche's fourth model series, the Panamera and for the hybrid drivetrain of the Cayenne SUV.

Also, a weaker level of hedging rates against the dollar played a role in full fiscal-year earnings, the company said.

Porsche also said it plans to increase its dividend to €21.94 ($31.99) per common share from €8.94 per share, and to €22.00 per preferred share from €9.00 – raising the total dividend payment to €384 million ($559.8 million) for 2007, from €157 million last year.

The automaker also said it plans to propose to its Jan 25 annual shareholders meeting a 10-for-1 stock split.

'Our goal is to improve the tradability of Porsche shares for private investors, considering the share price level that has been reached by now,' Porsche said in the statement.

November 13, 2007