Luxury sports car maker Porsche AG said Monday that its
net profit for fiscal 2007 more than tripled with help from a
revaluation of its 22 per cent stake in Volkswagen AG and strong
results from its core business.
Porsche said it earned 4.24 billion euros ($6.18 billion) for the
full year, up from 1.39 billion euros a year earlier. The
revaluation resulted in a one-time gain of 520.80 million euros
Pretax profit for the year ended July 31 more than doubled to
5.86 billion euros ($8.54 billion) from 2.11 billion euros in the
prior fiscal year.
The Stuttgart-based automaker said the earnings contribution of
its core business improved compared with last year, excluding
special factors such as a ``high three-digit million euro
development expenditure'' for Porsche's fourth model series, the
Panamera, and for the hybrid drivetrain of the Cayenne sport utility
vehicle. Another factor was the weaker level of hedging rates versus
the U.S. dollar.
Porsche said in September that sales for fiscal 2007 rose 3.4 per
cent on the year to 7.4 billion euros ($10.79 billion), helped by a
better model mix. Car sales for fiscal 2007 totaled 97,515 compared
to 96,794 a year earlier, the company said at the time.
Porsche proposes to increase its dividend to 21.94 euros ($31.99)
per common share from 8.94 euros last year and 22.00 euros ($32.07)
per preferred share from 9.00 euros in fiscal 2006. This will raise
the total dividend payment to 384 million euros ($559.8 million) for
fiscal year 2007 after 157 million euros last year.
Shares in the Stuttgart-based company initially jumped on the
news of the dividend, then plunged 8.52 per cent to 1,570 euros
($2,288.90) after the company announced it would suggest splitting
the stock into 10 shares for each one now held at its next general
The meeting is scheduled for Jan. 25 in Stuttgart.
On the Net: