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Porsche SE Slashes Outlook on VW Diesel Crisis
Porsche Automobil Holding SE, which owns a majority stake in Volkswagen AG, says its profit in 2015 will drop at least 50% because of the cost to VW of repairing some 9 million vehicles equipped with diesel engines the carmaker rigged to cheat emission tests.
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Porsche Automobil Holding SE, which owns a majority stake in Volkswagen AG, says its profit in 2015 will drop at least 50% because of the cost to VW of repairing some 9 million vehicles equipped with diesel engines the carmaker rigged to cheat emission tests.
In June Porsche SE predicts a group profit this year between €2.8 billion and €3.8 billion ($3.1 billion-$4.2 billion). Now it says the range will be between €800 million and €1.8 billion ($874 million-$2 billion) because of the diesel scandal.
This week VW posted a €1.7 billion ($1.8 billion) loss for the third quarter after taking a €6.7 billion ($7.4 billion) charge for the recall costs. Porsche SE cautions its estimate could fall further next month when it revisits VW’s expected fourth-quarter performance.
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