[AUTO] Porsche lost 329 million until June for the 2.377 million earned in 2019

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Strong impact of the losses of 1.019 million of the Volkswagen Group of whom Porsche is the largest shareholder

 

 

Porsche Automobil Holding SE lost € 329 million in the first six months of fiscal 2020, compared to more than € 2.38 billion in the prior year period.

"The result of the group is significantly influenced by the result of the investment accounted for at net worth of less than 300 million euros, while in the same period of the previous year: it exceeded 2,420 million", according to Porsche SE.

The change in the equity accounting result is largely attributable to the decrease in the group's after-tax result of the Volkswagen Group due to the negative impact of the Covid-19 pandemic. Porsche SE is the largest shareholder of the Volkswagen Group with 30.4% of the capital; in addition to the fact that Sttutgart's is one of the 12 brands of the German consortium.

The Volkswagen Group lost in the first half of the year with losses of 1,019 million euros. In the same period last year, the German group earned 7.168 million euros.

The Porsche SE group's net liquidity decreased to € 505 million as of June 30, 2020 (December 31, 2019: € 553 million). Cash outflows mainly result from the acquisition of common shares in Volkswagen and operating expenses for their maintenance. This was partially offset by cash inflows from income tax refunds, including accrued interest.

With revenues of € 50 million (previous year: € 52 million), the "Intelligent Transportation Systems" ("ITS") segment, which comprises the development of intelligent software solutions for transportation logistics, planning traffic and traffic management, generated a negative after-tax result. 11 million euros, a loss of more than the 4 million euros that were lost in the same period of 2019. The increase, according to Porsche, is due to lower other operating income, as well as higher personnel expenses.

NO FORECAST FOR 2020
"Currently it is not possible to make a realistic forecast," says Porsche about how this fiscal year will end in the face of the uncertainty caused by Covid-19.

It only issues a forecast on the net liquidity of the Porsche SE group which remains unchanged. It is expected to range between € 400 million and € 900 million as of December 31, 2020, without taking into account future investments.

During the first quarter, the Stuttgart brand delivered 116,964 units, which represents a decrease of 12% compared to the first half of 2019. The brand hopes to recover the positive path of sales in the second half of the year. The Cayenne has been the best-selling model with 39,245 units, while Porsche already has 4,480 units of the Taycan. It will be difficult to reach the 20,000 units of this model that were expected in its first year of life before the pandemic.