Porsche SE’s Q1 2015 Profit Soars to 870 Million Euro
Porsche Automobil Holding SE announced a robust group profit of 870 million euro for the first quarter of fiscal year 2015, a significant increase from the 728 million euro reported in the same period of the previous year. This impressive financial performance was highlighted by Prof. Dr. Martin Winterkorn, Chairman of the executive board of Porsche SE, during the company’s annual general meeting, where shareholders received a comprehensive overview of the group’s achievements and strategic direction. The substantial profit underscores Porsche SE’s strong position in the automotive industry and its effective investment strategy.
A key driver of this financial success was the profit generated from Porsche SE’s investment in Volkswagen AG, which amounted to 882 million euro. This figure, also up from 732 million euro in the prior year, demonstrates the continued strength and profitability of Volkswagen AG and its positive impact on Porsche SE’s overall financial results. The equity investment in Volkswagen AG remains a cornerstone of Porsche SE’s financial portfolio, contributing significantly to the group’s earnings and overall financial stability.
Maintaining a strong financial foundation, Porsche SE reported net liquidity of 2.25 billion euro as of March 31, 2015. This level is virtually consistent with the 2.27 billion euro recorded at the end of December 2014, indicating stable cash reserves. It’s important to note that this figure excludes the dividend received from Volkswagen AG for the fiscal year 2014, further emphasizing the underlying financial strength of Porsche SE. This healthy liquidity position provides Porsche SE with considerable financial flexibility for future investments and strategic initiatives.
Looking ahead, Prof. Dr. Winterkorn elaborated on Porsche SE’s investment strategy, stating, “In 2014, Porsche SE successfully implemented the first step of its investment strategy with the investment in INRIX. We are working hard on acquiring additional investments.” This proactive approach to expanding its investment portfolio signals Porsche SE’s commitment to long-term growth and value creation beyond its core investment in Volkswagen AG. The focus on new investments aims to diversify and strengthen Porsche SE’s financial base for sustained future success.
Shareholders were also presented with a proposal to maintain a consistent dividend payout, with 2.010 euro per preference share and 2.004 euro per ordinary share proposed for distribution. This steady dividend policy reflects Porsche SE’s commitment to delivering shareholder value and sharing its financial success with its investors. The unchanged dividend proposal highlights the company’s confidence in its continued profitability and financial health.
Based on the current group structure and barring unforeseen special effects, Porsche SE reiterated its positive financial outlook for the full fiscal year 2015. The company anticipates a profit ranging between 2.8 billion euro and 3.8 billion euro. Furthermore, Porsche SE aims to maintain a positive net liquidity position, projecting between 1.7 billion euro and 2.3 billion euro, even without considering potential future investments. This optimistic forecast reflects Porsche SE’s confidence in its operational strategy and the continued strength of its investment portfolio, pointing towards another successful financial year.