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Porsche SE Backs Annual Guidance After Post-Tax Result Jump

Published 2022-08-08, 06:50 a/m
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By Scott Kanowsky 

Investing.com -- Porsche Automobil Holding SE (ETR:PSHG_p) has reported a surge in post-tax profit during the first six months of the year and confirmed its annual outlook, as the investment arm of Volkswagen's leading shareholders eyes a potential initial public offering of the famous sportscar brand.

Group profit after tax jumped by 31% to €3.24 billion during the period, spurred on by gains from its major stake in Volkswagen (ETR:VOWG_p). Porsche SE's investment in the car giant amounted to €3.10 billion, the company added.

Porsche SE also backed its full-year guidance, saying it expects a positive group post-tax result of between €4.1 billion and €6.1 billion, with net liquidity in the range of €0.2 billion - €0.7 billion. However, the firm warned that these forecasts contain a "high degree of uncertainty" due in particular to the impact of the war in Ukraine.

The outlook did not contain any effects from a possible €20 billion flotation of Volkswagen's Porsche unit later this year, the group added.

VW has previously said that a "framework agreement" is in place for the move. Porsche SE - the holding company of the major VW stakeholders the Porsche-Piëch families - would snap up a little over 25 percent of voting shares in the brand at a 7.5% premium on its debut price.

Porsche SE would then retake control over the carmaking business behind the "Taycan" and "911", which it lost to VW in 2012 following an unsuccessful takeover bid.

In its half-year results on Monday, Porsche SE said no final decisions have been made on the deal, which former VW boss Herbert Diess promised would give the Porsche brand greater financial flexibility as it pursues a transition towards electric mobility.

"The actual feasibility of an IPO depends on a number of different parameters as well as general market conditions," Porsche SE said.

Shares in Porsche SE were trading higher in mid-morning European trading.

 
 

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