Porsche posts Q1 after-tax profit of 691 million euros

29th April 2011, Comments 0 comments

German luxury car maker Porsche reported Friday a first-quarter after-tax profit of 691 million euros ($1.0 billion), and said it had reduced its debt by 4.9 billion euros.

Porsche did not provide a comparable after-tax profit figure for the first three months of 2010 however, after shifting its fiscal year to coincide with that of Volkswagen, with which it is preparing a merger.

Cutting debt is a key step towards finalising the VW tie-up, and a Porsche statement said it now had a "net liquidity" position of minus 1.8 billion euros.

The group's results were boosted by 606 million euros in profits from investments, it said.

On Wednesday, Porsche said operating profit had more than doubled to 496 million euros in the three-month period, and that sales were 10 percent higher at 2.28 billion euros.

Sales of the company's Cayenne sports utility vehicle were particularly strong in the first quarter, accounting for roughly half of the total 23,442 vehicles delivered to clients.

That marked a year-on-year gain of 13 percent.

The statement and a Porsche spokesman declined Friday however to give an equivalent net profit figure for early 2010.

Porsche's merger with Volkswagen is scheduled to be finalised by the end of the year pending resolution of judicial issues stemming from Porsche's aborted attempt to take over VW in 2008.

© 2011 AFP

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