Porsche SE, the maker of the 911 sports car, forecast a second consecutive full-year loss from the costs of combining with Volkswagen AG.
Net income in the six months through Jan. 31 fell 83 percent to 957 million euros ($1.3 billion) from 5.51 billion euros a year earlier, Stuttgart, Germany-based company said today in its first-half report. Fiscal second-half earnings will be burdened as VW sells shares and reduces Porsche's holding, leading to a "low single-digit" billion-euro full-year loss.
Porsche, which took a majority stake in Volkswagen a year ago, posted its first net loss since 1994 last year because of writedowns on the value of options on shares of Europe's biggest carmaker following a failed hostile takeover. Wolfsburg, Germany-based Volkswagen and Porsche agreed to combine after the bid collapsed, and VW is buying vehicle-manufacturing unit in the merger's first phase.
"The dilution of Porsche SE's holding in Volkswagen and the resulting burden on the result are contingent on the execution of the capital increase which has yet to be determined and will also be influenced by the number of new preferred Volkswagen shares as well as their issuing price," the sports- car manufacturer said.
Deliveries in the first half fell 1.7 percent to 33,670 cars and sport-utility vehicles, the company said. Porsche plans to add models with a goal of boosting yearly sales to as many as 150,000 vehicles over the medium term, benefiting from savings from the combination with Volkswagen.
