Given that VW posted a €1bn net loss in H1 due to the COVID-19-led crisis, Porsche SE’s figures also swung to the red. Likewise, the FY20 outlook for the holding company remains uncertain, although net liquidity is expected stay at an appropriate level.
Companies: Porsche Automobil Holding SE Pref
Porsche SE’s numbers are dominated by the profitability and dividend payments of VW. It also has operating activities that are fully consolidated, but these are tiny and generate losses.
Nearly all of Porsche SE’s profit is the result of the at-equity contribution from VW plus the negative results from its tiny investments in other operations. In addition, the company itself shows small operating expenses including personnel costs.
After VW had released surprisingly good net earnings for 2018, Porsche’s numbers were also better than anticipated. This company’s EBIT number (which includes the VW at-equity profit contribution) increased by almost 6% to €3.50bn and net earnings were up by 6% to €3.47bn. As VW will also distribute a higher than previously expected dividend, Porsche raises its own dividend from €1.76 to €2.21.
After VW had released its 9M18 numbers, we had adjusted (i.e. lowered) our Porsche SE projections as well. Hence, today’s profit numbers and management’s full-year guidance was no surprise.
Porsche SE’s net profit was €2.67bn (vs. €2.14bn in 9M17) and the at-equity contribution from VW was €2.74bn (€2.20bn last year). The gap, i.e. the loss from the consolidated activities and the holding company’s operating expenses, was €70m this year compared to €60m last year.
Management expects the full-
Munich prosecutors have imposed this fine on Audi as a consequence of it having faked emission numbers on V6 and V8 diesel engines which were also delivered to Porsche AG. This amount will have a direct impact on VW’s 2018 net profit.
As a consequence of the above, Porsche SE will also suffer. It believes that its full-year 2018 net profit number will be between €2.5bn and €3.5bn while we currently see a number of a good €3.4bn. Once VW has released its 9M numbers (these are due on 30 October)
As VW had released its H1 numbers at the beginning of August, Porsche’s profit numbers were very much in line with these. The company showed a result from at-equity investments of €1.94bn (+1.4%) and a pre-tax number of €1.90bn (+1.5%). VW’s net profit had been up by 1.5%. Porsche’s net profit was up by 2.0% to €1.90bn as its income tax charge fell from €14m in H1 17 to €4m.
Cash from operations (based on management’s definition) increased from €271m to €577m as the dividend received from VW al
Porsche SE today announced that management changes might occur at Volkswagen which could, if these happen, also change the set-up of Porsche SE’s Management Board.
Porsche SE’s current CEO is Hans Dieter Pötsch, currently the Chairman of VW’s Supervisory Board. As he is not a management member, his departure is unlikely to be on the agenda. However, VW’s CEO Matthias Müller is simultaneously a Management Board member of Porsche SE. Consequently, his departure is possibly on the agenda.
Porsche generated net earnings of €3.33bn in the last year, whereas we had expected €3.54bn. In spite of this, the dividend proposal is €1.76 instead of our expected €1.51 for preferred shares. Simultaneously, net cash fell to €937m from €1.3bn as Porsche acquired almost 100% of PTV Group, a provider of software for traffic planning and management as well as transport logistics. In addition, management decided to buy small stakes (i.e. single-digit percentages) in two US start-ups that work in t
Porsche SE does not release full financial statements at this stage, i.e. for Q1 and Q3 for any given fiscal year. It only released a net profit number of €2.20bn for 9M17. As it had released a profit number of €1.90bn for H1, the difference is the Q3 result.
VW’s H1 revenue and operating profit numbers were higher than expected, but net earnings fell short. Nevertheless, the latter number was up by 87% to €6.47bn while Porsche has shown an at-equity contribution of €1.95bn from VW, which is an increase of 93%. As the holding company had hardly any other costs, net earnings increased by 94% to €1.90bn.
The German Transport Minister has decided that Porsche has to re-call all Cayenne vehicles with 3L diesel engines that are registered in Europe and he has prohibited registrations as of today until the cars comply with emission requirements. According to the Minister, Porsche has used software in these cars that allow the vehicle to emit different levels depending whether they are in the laboratory or on the street.
Having acquired a 10% stake in US traffic data provider Inrix Inc. in 2014, it now acquires 97% of German transport planning PTV Planung Transport Verkehr AG for more than €300m, on revenue of less than €100m (in 2015/16).
Porsche does not release a full Q1 statement (nor a Q3 statement) but only a net profit figure of €976m compared to last year’s €661m. This is exclusively the result of VW’s at-equity contribution of €1.01bn compared to last year’s €674m.
While prosecutors in Lower Saxony are going after the above as they are believed to have manipulated the VW share price, Stuttgart prosecutors are now opening a similar case because of the potential manipulation of the Porsche SE share price. In both instances, the prosecutors are acting on the request of Bafin which believes that the managers informed the public too late about Dieselgate.
Pötsch (currently the Chairman of VW’s Supervisory Board) acts as Porsche SE’s CEO and Müller (currently V
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The market (and FDEV) is projecting an ambitious step-change in financial performance in FY 22 and FY23. Investors however may recall that Elite Odyssey updates have been delayed. For a variety of reasons, we believe there is some residual risk of disappointment here. Hence, we prefer to sit on the side-lines. Buy
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