By John Meyer, consultant in financial affairs – Eurasia Business News, December 13, 2024. Article No 1336.

Porsche Automobil Holding SE has withdrawn its profit guidance for 2024, citing potential impairment charges of up to €20 billion (approximately $20.9 billion) related to its investment in Volkswagen AG, where it holds a controlling interest. Additionally, the holding company anticipates a further charge of between €1 billion and €2 billion from its stake in Porsche AG, the luxury sports-car manufacturer.

The decision to retract the profit forecast stems from Volkswagen’s announcement that it will not complete its corporate planning by the end of December, which prevents Porsche SE from relying on previously approved financial results for accounting purposes. This uncertainty is compounded by a challenging market environment characterized by lower-than-expected demand and increasing geopolitical tensions.

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Porsche SE had initially projected an after-tax profit of between €2.4 billion and €4.4 billion for the year, but these estimates are now deemed unrealistic due to the anticipated impairments related to its investment in Volkswagen AG. 

The holding company’s management board has indicated that these impairments will significantly negatively impact their after-tax profits.

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© Copyright 2024 – Eurasia Business News. Article no. 1336.