Porsche SE Posts Surge in 2012 Profit on Auto Unit’s Sale
Porsche SE, Volkswagen AG (VOW)’s largest shareholder, reported a surge in 2012 net income after selling the remainder of its automaking business to VW last year.
Profit climbed to 7.83 billion euros ($10.1 billion) from 59 million euros in 2011, the Stuttgart, Germany-based holding company said in a statement today. Porsche received a cash inflow of 4.49 billion euros from the sale of the final 50.1 percent of the auto unit to VW.
The holding company, whose sole asset is VW shares, proposed a dividend for 2012 of 2.01 euros per preferred share and 2.00 per ordinary share. Porsche expects profit in the “low single-digit billion-euro range” for 2013.
Volkswagen finalized the acquisition of the Porsche sports- car business in August, ending a seven-year saga that saw VW turn the tables on the maker of the 911. With the purchase, VW assumed full ownership of the Porsche auto brand.
Porsche SE remains a holding company for a 50.7 percent stake in VW’s common stock. After repaying 2 billion euros in bank debt, it said last year that it plans to use proceeds from the transaction to make investments “along the automotive value chain,” including in energy trading and real estate.
Porsche gained as much as 1.70 euros, or 2.7 percent, to 64.50 euros and was up 0.2 percent as of 3:45 p.m. in Frankfurt. The stock has climbed 2 percent this year, valuing the German company at 19.3 billion euros.
To contact the editor responsible for this story: Chris Reiter at email@example.com