In 2011 Porsche deliveries were up by 22 per cent, selling a total of 119,000. However profit was down.
Valuation of the merger cost Porsche
2011 saw the company just about breaking even and making a fairly small profit following uncertainties of the potential Volkswagen merger accounting for losses. Volkswagen currently own the majority of the company. The other 51.1 per cent was expected to be bought out by now but complications hit the deal meaning Porsche’s finances suffered. It was estimated that profit was decreased in 2011 by €4.37 billion. Total profit was €59 million for 2011.
Increased profits this year
Dieter Poetsch, Porsche’s chief Financial officer has confirmed that the company are expecting a major increase in profits this year with interest payments being reduced amongst other factors playing a part. He said “We expect Porsche SE to generate a significant profit before special effects at group level in 2012,”
Will further revaluations be a good or bad thing?
Mr Poetsch also made the interesting point of saying that other revaluations of the whole merger deal would have an effect on Porsche profits. It is not known yet whether that will be a good or bad thing.
Many Porsche 911 orders already
The Porsche 911 has so far been ordered a great number of times in the first quarter already. The new generation recently went on sale in December, allowing Porsche to record a healthy first two months of the year.
The Porsche and Volkswagen tangle
2009 was the year Volkswagen originally purchased Porsche in December, paying €3.9 billion for 49.9 per cent of the company. The full merger deal was previously agreed back in 2009 when Porsche stacked up €10 billion of debt when they attempted to purchase Volkswagen. A criminal probe into Porsche executives along with tax hurdles meant that the deal could not be concluded. Volkswagen have been looking at alternative methods of purchasing the remainder of Porsche. However they face a major tax bill of €1 billion euros if any purchased is completed before the year 2014. This is currently being negotiated with the appropriate tax authorities. No deal seems to be happening anytime soon. Martin Winterkorn, the Chief Executive of the Volkswagen Group admitted that there are many obstacles to overcome before any deal is reached.