FRANKFURT (Reuters) - Porsche SE, Volkswagen's largest shareholder, expects a 2024 loss after tax of around 20 billion euros ($21.7 billion), it said on Friday, citing previously disclosed impairments
Porsche SE Projects $21.7 Billion Loss on Volkswagen Stake
FRANKFURT (Reuters) - Porsche SE, Volkswagen's largest shareholder, expects a 2024 loss after tax of around 20 billion euros ($21.7 billion), it said on Friday, citing previously disclosed impairments on its holding in Europe's top carmaker.
The impairments, first announced in December, reflect a substantial loss in both Volkswagen's and Porsche AG's market value. Porsche SE owns 31.9% of Volkswagen and 12.5% of Porsche AG.
Porsche SE withdrew its outlook for after-tax profit at the time, when Volkswagen was still engaged in a major conflict with unions over plant closures and pay, all weighing on the company's annual planning.
Porsche SE, which is scheduled to release full annual results on March 26, said the impairments on its Volkswagen and Porsche AG stakes, which are non-cash effective, ended up at 19.9 billion euros and 3.4 billion euros, respectively, both at the upper end of previously communicated ranges.
Net debt is expected to amount to 5.2 billion euros as of end-2024, Porsche SE said, also confirming that it still expected to pay a dividend for the past year although it did no not provide further details.
($1 = 0.9231 euros)
(Reporting by Christoph Steitz; Editing by Kirsten Donovan)
