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

Luxury sports car maker Porsche AG said Friday net profit soared in the fiscal first half, boosted primarily by a gain from its stake in Volkswagen.

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

Net income in the first six months rose to Ђ1.05 billion (US$1.36 billion), from Ђ170 million in the same period a year earlier, the company said in a statement. Sales fell to Ђ3.05 billion (US$3.96 billion), from Ђ3.26 billion a year earlier and below analysts' estimates of Ђ3.17 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 Ђ520 million (US$674.86 million) to the bottom line.

Analysts had expected the Stuttgart-based sportscar maker to post net profit of Ђ340 million (US$441.25 million) in the first six months, reports AP.

Porsche shares were down 0.84 percent in early Frankfurt trading to Ђ1,001.51 (US$1,299.76).

Porsche's fiscal year ends July 31.