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Porsche SE profits down by half in wake of VW emissions scandal | |
(about 4 hours later) | |
Porsche profits have more than halved following the revelations in the Volkswagen diesel emissions scandal. | Porsche profits have more than halved following the revelations in the Volkswagen diesel emissions scandal. |
The luxury carmaker, which is Volkswagen’s majority shareholder, said nine-month net profits plunged to €1.19bn (£847m) from €2.5bn a year ago. | The luxury carmaker, which is Volkswagen’s majority shareholder, said nine-month net profits plunged to €1.19bn (£847m) from €2.5bn a year ago. |
The company, which holds 52.2% of VW’s common shares, cut its guidance last month after revelations that defeat devices to cheat emissions tests had been fitted to 11m VW vehicles around the world. | The company, which holds 52.2% of VW’s common shares, cut its guidance last month after revelations that defeat devices to cheat emissions tests had been fitted to 11m VW vehicles around the world. |
Last week the US Environmental Protection Agency, which uncovered the initial emissions rigging, claimed VW had also installed the devices in Porsche vehicles with three-litre engines, in models with dates ranging from 2014 to 2016. | Last week the US Environmental Protection Agency, which uncovered the initial emissions rigging, claimed VW had also installed the devices in Porsche vehicles with three-litre engines, in models with dates ranging from 2014 to 2016. |
Porsche, which now owns 30.8% of VW’s capital stock, kept its new guidance on Tuesday, forecasting a net profit of between €0.8bn and €1.8bn this year, compared with €3.03bn in 2014. | Porsche, which now owns 30.8% of VW’s capital stock, kept its new guidance on Tuesday, forecasting a net profit of between €0.8bn and €1.8bn this year, compared with €3.03bn in 2014. |
Related: VW repair bill rises as Germany says 540,000 recalled cars need hardware changes | Related: VW repair bill rises as Germany says 540,000 recalled cars need hardware changes |
Porsche shares rose 0.4% to €39.91 as of 9.54am GMT while VW preference shares were down 1.1% at €94.99. | Porsche shares rose 0.4% to €39.91 as of 9.54am GMT while VW preference shares were down 1.1% at €94.99. |
The firm, controlled by the Porsche and Piech families, has said its forecast requires VW earnings to meet current expectations and could change depending on further findings in the scandal. | The firm, controlled by the Porsche and Piech families, has said its forecast requires VW earnings to meet current expectations and could change depending on further findings in the scandal. |
Admissions by Europe’s largest carmaker on 3 November that it could face another €2bn of costs from manipulating carbon dioxide emissions of about 800,000 cars could hit Porsche’s results again. | Admissions by Europe’s largest carmaker on 3 November that it could face another €2bn of costs from manipulating carbon dioxide emissions of about 800,000 cars could hit Porsche’s results again. |
Porsche’s 32-page report includes no new evidence on VW’s investigation of the scandals. | Porsche’s 32-page report includes no new evidence on VW’s investigation of the scandals. |
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