Porsche SE Reports Drop in Profits

Volkswagen-owned Porsche SE has reported a drop in profits in the first three quarters of the year compared to the same period of last year.

After the first nine months of 2023, profit after tax totalled €3.8 billion ($4.1 billion), the DAX-listed German luxury carmaker announced in Stuttgart on Monday, a decrease compared to €4.8 billion the year before.

The result is significantly influenced by the core shareholdings in Volkswagen AG and the sports car manufacturer Porsche AG.

Porsche SE maintained its forecast that consolidated earnings after tax for this financial year should be between €4.5 billion and €6.5 billion, with earnings expected to be in the lower half of the range.

Net debt has improved and stood at €5.8 billion at the end of September this year. It is expected to be between €6.1 billion and €5.6 billion by the end of the year, the company reported.

Through Porsche SE, the Porsche and Piëch families secured 25% plus one share of the sports car manufacturer’s ordinary shares when Porsche AG went public last year. This gives the families a blocking minority in the Stuttgart-based car manufacturer.

Porsche SE financed the purchase price of €10.1 billion with €7.1 billion in debt capital, while the rest was paid with the special dividend that the VW Group distributed to shareholders as part of the transaction.