Profit for the Year Triples at Porsche

BERLIN, Nov. 12 (AP) — The luxury sports car maker Porsche said on Monday that its net profit for 2007 more than tripled with help from a revaluation of its 22 percent stake in Volkswagen and strong results from its core business.
Porsche said it earned 4.24 billion euros ($6.18 billion) for the year, up from 1.39 billion euros a year earlier. The revaluation resulted in a one-time gain of 520.8 million euros ($759.27 million).
Pretax profit for the year that ended July 31 more than doubled to 5.86 billion euros ($8.54 billion) from 2.11 billion euros in the previous year.
The automaker, based in Stuttgart, said the earnings contribution of its core business improved compared with last year, excluding special factors like a “high three-digit million euro development expenditure” for Porsche’s fourth model series, the Panamera, and for the hybrid drivetrain of the Cayenne sport utility vehicle. Another factor was the weaker level of hedging rates versus the American dollar.
Porsche said in September that sales for the 2007 fiscal year rose 3.4 percent to 7.4 billion euros ($10.79 billion), helped by a better model mix. Car sales totaled 97,515, compared with 96,794 a year earlier, the company said.
Porsche proposes to increase its dividend to 21.94 euros ($31.99) for each common share, from 8.94 euros; and it will pay out 22 euros ($32.07) for each preferred share, an increase from 9 euros in 2006. This will raise the total dividend payment to 384 million euros ($559.8 million) for 2007, from 157 million euros last year.
By THE ASSOCIATED PRESS