Porsche SE Posts 4.4 Billion Euro Deprivation
Porsche LogoLosses stem from its failed bid to takeover Volkswagen AG, Porsche ’s car division remains profitable By Alex Ricciuti
November 13, 2009 6:01 PM Filed Under: Corporate/Financial, German, Porsche
Porsche Automobil Holding SE has reported a pre-tax loss of €4.4 billion ($6.6 billion) for its 2008-2009 fiscal year.
Porsche Automobil Holding SE is the parent company of Porsche AG, the luxury automaker. Porsche SE’s losses mostly stem from its failed bid to take over Volkswagen AG.
Porsche SE had been buying up VW stock over the last couple of years by borrowing cash in an attempted take-over of its much larger rival. But Porsche SE’s gamble for a hostile purchase of Volkswagen AG backfired when it found itself overextended debt-wise as the credit markets hit a crisis in the financial meltdown of late 2008. Porsche SE was then forced to merge with VW this past summer.
In a press release announcing the loss, Porsche SE also reported that its car division, Porsche AG, “remains the world’s most profitable automaker,” with a profit margin in the double-digits.
