Porsche SE nine-month profit halved due to VW scandal costs

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The emissions scandal in which Volkswagen is involved, have affected Porsche SE, its net profit being reduced more than half. The car sales have remained strong, though. The majority shareholder of Volkswagen, Porsche SE, declared nine-month profit was cut in half due to huge costs on diesel scandal that is affecting eleven million cars. Net profit collapsed from 2.5 billion euro in the same period last year to 1.19 billion euro. The company, which last month already cut its guidance as a result of the emissions scandal, owns 52.2 percent of Volkswagen’s common shares and 30.8 percent of its capital stock. The net liquidity decreased as of 30 September 2015 to 1.44 billion euro (from 2.27 billion euro at the end of 2014). Porsche SE said this decrease is attributable in particular to the acquisition of 1.5 percent of the Volkswagen ordinary shares from Suzuki. Porsche SE has also adjusted its group profit forecast for the fiscal year 2015 and it now expects overall group profit of between 0.8 billion euro and 1.8 billion euro. Previously, it was expected a group profit of between 2.8 billion euro and 3.8 billion euro. On the other hand, Porsche had announced a new record in car sales for October. Last month, Porsche delivered 18,699 new cars worldwide, with a total of over 190,000 vehicles in the first ten months. That represents a year-on-year increase of 18%. Globally the car manufacturer achieved an increase of 27% to 191,784 units in the first ten months of the year. The best-selling model remains the Macan with nearly 70,000 units by October. The strongest single market in October was China, where Porsche sold 4,950 vehicles (+44%), with the US lose behind (4,070 vehicles, +11%). The European market grew by 11% (6,691 units). The main contributor was Germany with 2,644 units (+10%).