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Porsche says 1st-half earnings soared, boosted by stake in VW

Porsche says 1st-half earnings soared, boosted by stake in VW

Luxury sports car maker Porsche AG said Friday that net profit soared in the fiscal first half, boosted primarily by a gain from its stake in Volkswagen AG.
Net income in the first six months rose to euro1.05 billion (US$1.36 billion) from euro170 million in the same period a year earlier, the company said in a statement. Sales fell to euro3.05 billion (US$3.96 billion) from euro3.26 billion a year earlier and below analysts' estimates of euro3.17 billion (US$4.11 billion).
Porsche said net profit was boosted by a better model mix, gains from stock-price hedging and a re-evaluation of the company's 27.4 percent stake in Volkswagen.
The re-evaluation of the Volkswagen stake, which Porsche said was necessary to reflect the increase in its stake in Europe's biggest carmaker, contributed euro520 million (US$674.86 million) to the bottom line.
Analysts had expected the Stuttgart-based company to post net profit of euro340 million (US$441.25 million) in the first six months.
At the company's annual general meeting, also Friday, Porsche announced that Wolfgang Porsche would succeed Helmut Sihler, 73, as supervisory board chairman, effective immediately.
Porsche, 63, has been a member of the company's supervisory board since 1978.
The Porsche and Piech families control 100 percent of the company's voting rights. Ferdinand Piech is chairman of the Volkswagen supervisory board.
Porsche shares closed down 1.8 percent in Frankfurt at euro991.59 (US$1,279.25).


Updated : 2021-05-17 22:35 GMT+08:00