Porsche faces huge loss on VW stake - €4.4bn

Porsche on Wednesday said it expected a loss of up to several billion euros in the current year from a possible revaluation of its majority stake in Volkswagen.

Hans Dieter Pötsch, VW’s chief financial officer who was also named chief financial officer of the Porsche holding company this week, said Porsche might have to deconsolidate its stake in VW.

Mr Pötsch said the losses from marking Porsche’s 51 per cent stake in VW to market would be partly compensated by a revaluation triggered from the planned sale of a 49.9 per cent stake in Porsche’s sports car business to VW.

“These structural changes in the annual report of Porsche SE would, based on today’s knowledge, lead to a loss in the range of a low one-digit billion euro sum,” Mr Pötsch said.

It would be the second large loss of the German producer of the famous 911 sports car after its audacious attempt to take over the much larger Volkswagen group failed dramatically this year.

The stakebuilding in Europe’s largest carmaker brought Porsche to the verge of bankruptcy and led to a €4.4bn ($6.6bn) pre-tax loss in its past fiscal year, following a €8.6bn profit in the year before.

http://www.ft.com/cms/s/0/931726b6-d9a0-11de-ad94-00144feabdc0.html

VW -2,2 %...

 

VW has been on a huge slump as of late.

You think it's a buy at some point?

Cheers.

 

Let me answer this way :

http://www.acea.be/index.php/news/news_detail/passenger_cars_registrations_rise_112_in_october

That´s all pre "scrap bonus". Also, some large investors protesting against Porsche takeover - claiming too expensive.


Yesterday Martin Winterkorn entered the board. Should be positive in the long run. He´s an excellent entrepreneur.

http://www.volkswagenag.com/vwag/vwcorp/info_center/en/news/2009/11/WikoPoetschPorsche.html

 

That'll teach them for their option antics!

 

How times change:

On November 28th, 2007, Porsche announced ... €3.6bn gains from options investments on VW shares.