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Porsche profits race ahead

Nov 12 2007 21:26

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Frankfurt - German luxury sports car group Porsche said Monday that annual net profit had more than tripled and that it would propose dividends be more than doubled along with a 10-for-one stock split.

In its 2006/2007 fiscal year, Porsche, the world's most profitable car maker, recorded a net profit of €4.242bn, up from €1.393bn in the previous exercise, which ends on July 31.

Porsche directors would propose a dividend payment of €21.94 per common share, up from €8.94, and "a split in shares at a ratio of 1:10" at an annual general assembly on January 25, a statement said.

A re-evaluation of Porsche's share in the Volkswagen auto group resulted in a one-off addition to the results of $520.8m, it added.

Earnings from stock option transactions, meanwhile, "contributed €3.593bn to the overall result".

Pre-tax profit for the year reached "a record figure of €5.857bn, up very significantly from the previous year's figure of €2.110bn".

The results were to be released on November 28 but were published after a meeting of the supervisory board so the company could move up its filing for a new statute as a European Company.

Porsche said the results were negatively affected by the dollar's fall against the euro and development costs that it said were at the "high three digit million euro" level.

But it added that those items were "more than set off by very positive effects from stock option transactions."

Porsche has increased its stake in VW to 31% and is now believed set to make a takeover bid for the biggest European car maker.

- AFP

 
 
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