Volkswagen holding company Porsche SE will probably have to write down billions of euros on its investments in VW and the sports car manufacturer Porsche AG.
Volkswagen holding company Porsche SE will probably have to write down billions of euros on its investments in VW and the sports car manufacturer Porsche AG.
The company has therefore lowered its earnings forecast for the current year and is now expecting a considerable loss after tax, according to a statement published on Friday.
Previously, Porsche SE had forecast a group profit after tax of between €2.4 billion ($2.5 billion) and €4.4 billion.
Despite write downs, the holding company still expects to pay a dividend for 2024.
Porsche SE is provisionally assuming an impairment loss at German car maker Volkswagen of between €7 and €20 billion. The holding company put the possible write-downs on its Porsche AG investment at between €1 and €2 billion.
Due to the weak market environment as well as increasing geopolitical tensions and protectionist tendencies, the effects can only be roughly estimated, it said.
Source: dpa.com