FRANKFURT (ANE/Bloomberg) – Porsche AG will probably succeed in convincing preferred shareholders to support a 5 billion-euro ($6.9 billion) stock sale because the deal may offer the chance to buy into Volkswagen AG at a discount, investors said. Porsche added that the proposed share sale is a “key precondition” for the VW merger by helping the sports-car maker reduce debt. Porsche aims to complete the capital increase by May 30, 2011, CFO Hans Dieter Poetsch said. The deadline would be extended until Aug. 30 should U.S. lawsuits against the carmaker result in a delay. “Porsche SE’s liabilities will be reduced considerably through the capital increase,” Poetsch said. “Porsche believes it’s well on its way to set new records in terms of unit sales, revenue and profits in the medium term.”

The Stuttgart, Germany-based company’s shareholders are voting today at an extraordinary meeting on whether to approve raising the funds, half of which would come from the Porsche and Piech families, who control the common shares. The proposal needs the approval of 75 percent of both common and preferred shareholders present at the meeting in order to pass. Porsche is in the process of merging with Volkswagen, Europe’s largest carmaker. Porsche’s preferred shares have risen 28 percent this year, while Volkswagen’s preferred stock has surged 90 percent.

“Porsche preferred shares are the cheapest way to get a slice of a joint company,” said Juergen Meyer, who oversees about 1 billion euros at SEB Asset Management in Frankfurt, including more than 1.4 million Porsche shares. “If Porsche doesn’t get the money, they’d have to sell their extremely profitable car business or their holdings in VW, and that can’t be in the interest of its investors.”

The sports-car maker, needs the money to help pay back a 2.5 billion-euro bank loan expiring on June 30. The two car manufacturers agreed to merge in August 2009 after Porsche racked up more than 10 billion euros of debt in an unsuccessful attempt to gain control of VW. Volkswagen now holds 49.9 percent of Porsche’s car-making operations.

U.S. lawsuits

“I don’t think the families will have any problem getting the level of acceptance that they want,” said Pierre-Alexis Dumont, a fund manager at OFI Asset Management in Paris, which oversees about $1.23 billion in stocks, including about 380,000 Porsche shares. “Most people who are invested in Porsche right now knew there’d be a share offering. They’re most interested in the value creation from the merger with Volkswagen and the end of the discount of their holdings.”

The combination, scheduled for completion in the second half of 2011, may stall until the resolution of tax-related issues in Germany and U.S. lawsuits, VW CEO Martin Winterkorn, who also runs Porsche’s holding company, said last month.

Fair price

U.S.-based short sellers of VW stock have sued Porsche, claiming the carmaker secretly piled up VW shares and later caused them to lose more than $1 billion. A U.S. court will determine in January whether the case may proceed.

“I’m not going to touch the shares again until the uncertainties regarding the capital increase and the lawsuits have been dispelled,” said Stephan Thomas, a fund manager at Frankfurt Trust, which manages about 16 billion euros. “The holders of preferred shares are being made to pay for the integration process.”

Broad approval will depend on a fair price for the offering and the extent to which it will enable Porsche to repay debt, said Dumont, adding that a price between 45 euros and 55 euros would be justified, depending on the outcome of U.S. litigation. That would be as much as 24 percent less than Porsche’s share price yesterday.

“It doesn’t help shareholders if it’s done at a sharp discount to the intrinsic value of the business,” he said.

STUTTGART (Courtesy Of Bloomberg) — Porsche Automobil Holding SE, the maker of the 911 sports car, is likely to win an appeals case over a shareholder meeting during its failed bid to take over Volkswagen AG, a German judge said in a preliminary assessment of the case.

Minority investors may not win their bid to invalidate shareholder votes over directors’ approval of an “unconscionably” high salary for CEO Wendelin Wiedeking and other officials, Judge Eberhard Stilz said at a hearing at the Stuttgart Higher Regional Court.

“It’s important to stress that it is not our task to rule on whether the compensation was illicit or whether the bid to take over Volkswagen was handled in line with the law,” Stilz said on Nov. 3.

“We only have to judge whether the shareholders’ decisions were taken wrongfully, and that only indirectly touches these issues.”

The failed bid led to Wiedeking’s ouster in 2009, regulatory probes, and lawsuits in United States and Germany.

Volkswagen agreed to join with Stuttgart-based Porsche in August 2009 after the sports car maker’s debt tripled to more than 10 billion euros ($14 billion) following the failed bid. Porsche in fiscal 2008 paid 143.5 million euros to its management board.

Shareholders have wide discretion when deciding whether to discharge directors and executives from liability over their actions, Stilz said. The court may still change its view after hearing the parties’ arguments, according to the judge. The court scheduled a ruling for Nov. 17.

‘Catastrophic signal’

“If this court grants a carte blanche to Porsche over these issues, it would be a catastrophic signal, also in terms of the competition of financial markets,” said Martin Weidemann, a lawyer for the plaintiffs. “It will also be an issue what courts in this country can offer investors.”

The suit seeks to invalidate the votes to discharge executives and directors from liability for their actions in fiscal 2008. The case also targets the votes approving the appointment and remuneration of supervisory board members.

The minority investors are appealing a lower court ruling that rejected their claims. The shareholder meeting took place in January 2009, before Porsche’s takeover bid was abandoned.

Porsche considers the claims unfounded, company spokesman Albrecht Bamler said.

$1 billion hit

The investors argue Porsche should have answered more questions at the meeting about its strategy leading to an October 2008 announcement that it controlled 42.6 percent of Volkswagen shares and had secured so-called cash-settled options for another 31.5 percent.

The statement caused VW shares to surge as short sellers were forced to buy shares borrowed in a bet that Volkswagen stock would fall.

Previously, Porsche had said it was seeking a 50 percent stake in the company.

The events led to probes by Germany’s financial-market regulator BaFin and prosecutors. Short sellers have filed U.S. lawsuits claiming the sports car maker secretly cornered the market in VW shares and cost them more than $1 billion.

Porsche was right not to answer all questions about derivatives it used in the process, because such disclosures could have damaged the interests of the company, Stilz said.

Panamera and new Cayenne drive growth forward

Stuttgart. The Dr. Ing. h.c. F. Porsche AG, Stuttgart, has again achieved outstanding results in the business year 2009/10 (July 31). According to the preliminary figures, with a growth of 17.9 percent to 7.79 billion euros, Porsche achieved the highest turnover in company history. Sales also rose by 8.8 percent to 81,850 (previous year: 75,238) vehicles.

Michael Macht, Chairman of the Porsche AG Board of Management, foresees a further dynamic company development: “The record turnover dramatically demonstrates that Porsche has regained its former strength. Porsche will also follow up the positive trend in the current business year.” Macht primarily bases this upon the vehicle series Cayenne and Panamera, along with the 911 Speedster and the 911 Carrera GTS. At the start of October, both of these new models will celebrate their world premiere at the Paris Motor Show.

At the same time, the announced change in Porsche AG top management will take place. Starting on October 1, the previous head of product planning, product management and model ranges for the VW Group and the Volkswagen brand, Matthias Müller, will become the Chairman of the Porsche AG Board of Management. Michael Macht will be joining the Volkswagen AG Board of Management, and he will have the functional responsibility for Group Production.

In the previous business year 2009/10, the Panamera, which was introduced on the worldwide market in September 2009, achieved sales of 20,615 units. The highest-volume model line remained the Cayenne with 29,855 sold. Despite the model changeover in the series in spring 2010, the decline only amounted to 12.9 percent. The entirely newly developed Cayenne, at retailers since May of this year, has already reached 11,618 units.

The sales of the 911 series were negatively affected by the continuing difficult economic conditions facing the sports-car market. In the business year 2009/10, according to preliminary figures, sales dropped by 27.4 percent to 19,663 units. It should be noted, however, that the model mix was improved. Porsche’s total sales for the new 911 Turbo and the 911 Turbo S amounted to 4,055 units. The sales for the Boxster series declined by 10.8 percent to 11,717 units. Of these units, 6,865 vehicles were the Roadster Boxster and 4,852 were the Cayman.

The development of the Porsche Group fared differently in the world’s most important sales regions. Sales outside the core markets in Europe and North America grew significantly by 25.8 percent to 25,283 vehicles. The Chinese market alone accounted for 11,724 units, an increase by 47.5 percent from the same period of the previous year. In Europe, sales showed a slight increase by 1.4 percent to 30,948 units. Of these vehicles, 11,857 were sold in Germany, 3.5 percent less than in the previous year. In the North American market Porsche sold 23,705 vehicles, an increase of four percent compared to the previous year. In the whole American market Porsche achieved sales of 25,619 units.

Production from the previous year amounted to a total of 89,123 vehicles, 16.1 percent more than in the same period of the previous year. In Leipzig, 32,215 units of the Cayenne series and 24,494 new Panamera vehicles rolled off the production lines. At the main plant in Stuttgart-Zuffenhausen, 20,159 vehicles of the 911 series were built, which was 27.4 percent fewer than in the previous year. The Boxster series reached a total of 12,255 units, a decline of 14.9 percent.

The number of employees increased by the end of the business year by one percent to 12,722 persons. The overwhelming majority of these, 10,880 employees, were domestic employees. 110 young people newly started apprenticeship training. In total, 340 trainees were thereby employed at Porsche.

Porsche Showcases 60 Years of New and Rare Sports Car Highlights at 2010 Monterey Classic Car Weekend

ATLANTA — The Monterey Historic Weekend traditionally focuses on the most coveted automobiles from around the world, but rarely have vehicles with a “hybrid” designation so forcefully commanded the anticipation of attending enthusiasts. Porsche aims to change that status quo by proving just how tempting – and potent – Porsche’s Intelligent Performance can be. The German automaker is making its point with the new 918 Spyder, the 911 GT3 R Hybrid racecar, and the Cayenne S Hybrid – all joining a collection of Porsche classics and contemporary models on display during the Monterey festivities.

The annual gathering of automotive aficionados during the August 9 – 15 Monterey Peninsula Automotive Week is also a fitting venue to celebrate the company’s 60th anniversary year in America. In addition to introducing its new portfolio of hybrid cars, Porsche will be unveiling a new web site to go live next week that will feature contests, videos, stories and images, all celebrating the cars and people that put Porsche on the United States map six decades ago.

“Automotive passion is always alive and thriving within the Porsche community, but it’s particularly heated at this extraordinary event,” said Detlev von Platen, President and CEO, Porsche Cars North America. “Where else can you see the evolution of Porsche in America so magnificently displayed, from early sports cars like our 356 through our newest intelligence performance powerhouse, the 918 Spyder ?”

Among the Porsche models on display throughout the Monterey peninsula, the first North American public appearance of the 918 Spyder concept at the Pebble Beach Concours d’Elegance on Sunday, August 15 will be a highlight. Just recently approved for production, the fuel-sipping, ultra-high-performance super sports car has already been pre-ordered by over 1000 enthusiasts.

With the potential of recording 78 mpg, the 918 Spyder is an impressive showcase of Porsche’s Intelligent Performance philosophy, but it’s not alone in getting performance enthusiasts to “think green.” Motorsports fans will have the opportunity to check out the Porsche 911 GT3 R Hybrid August 12 – 15. The race car will be based at the Porsche Zentrum, a specially-built facility open to visitors located up Peter Hayes Hill on the compounds of the Pebble Beach Lodge. Attendees will also have a unique opportunity to see the car and chat with Porsche Works racer Patrick Long at “The Quail, A Motorsport Gathering” from 10 a.m. – 5 p.m on Friday, August 13. On Saturday, the 911 GT3 R Hybrid will be showcased at the Rolex Monterey Motorsports Reunion (formerly the Monterey Historic Automobile Races) at the Mazda Raceway Laguna Seca, and then alongside the 918 Spyder at the Pebble Beach Concours d’Elegance on Sunday.

The Quail Lodge will also be the place to see some of the world’s finest Porsche classics. Four rare automobiles from the Porsche Museum in Germany are en route to Monterey. Visitors will be able to enjoy the beautiful lines of a 1955 and 1958 356 Speedster, a 1960 356 B Carrera 2000 GS Carrera GT and a 1962 356 Carrera 2 Cabrio. Newer Porsche siblings are also on display, including new and latest models available for consumer test drives.

Board of Management and Group Works Council Agree to Secure Production Locations through 2015

Stuttgart. The Board of Management and the Group Works Council of the Dr. Ing. h.c. F. Porsche AG, Stuttgart, recently reached a long-term agreement to secure its production locations. The new regulations expired on July 31, 2015 and will supersede current regulations dating back to 2005. The company thereby creates the prerequisite for continued productivity increases and flexibility, and lays the groundwork for lasting positive corporate development. In response, in the next five years, Porsche will make an investment in the high hundreds of millions in infrastructure and project innovations. By the end of the year, separate employee agreements will be reached in its German subsidiaries.

The core agreements are as follows:
• Job security for the coming five years for the entire staff of Porsche AG.
• Uninterrupted production of the mid-engine sportster Boxster as second mainstay along side all 911 models in the Porsche factory in Zuffenhausen.
• The hiring of 100 trainees or dual college students per fiscal year for technical and sales positions. Further, through 2015, the company pledges to hire graduates to positions with open-ended employment contracts.

In addition, beginning in the spring of 2011, the Board of Management and the Group Works Council agreed to produce the mid-engine sportster Cayman at its Zuffenhausen plant. The lacquered body of the Cayman model will continue to be supplied by our Finnish assembly partner Valmet Automotive.

Should vehicle production reach capacity in Zuffenhausen, Porsche will draw on its production turntable capacities of the Volkswagen Corporation

It is agreed that the production location Weissach will continue to be strengthened: Going forward, Porsche will continue to employ all significant developments and intensify research into alternative engines. Further, in the summer of 2011, all segments of Porsche marketing will be centralized at the Zuffenhausen location.

Michael Macht, Chairman of the Board of Porsche AG, stated: “With this agreement securing production locations, we will be optimally positioned for growth in the coming years. This socially balanced compromise guarantees Porsche employees more job security in the future. It also guarantees the company a high degree of flexibility. With this agreement as a foundation, we are optimistic that we can increase sales and profits in the coming years. Worldwide, Porsche received the highest number of contracts in the company’s history during the months of June and July, proving that the company is on the road back to its former power.”

Uwe Hück, Chairman of the Group Works Council, commented: “This arrangement guarantees that in the near future, Zuffenhausen and Weissach will once again run at full capacity. With this, the highest level of investment in the history of Porsche, we will secure our economic self-sufficiency and thereby our competitiveness. Further we have stipulated additional development capacities and added the Boxster as the second mainstay to Zuffenhausen. Our employment for 2015 is thereby secured. I fear that we will add extra shifts as early as January. I am especially happy once again to be able to train 100 young people per year and offer future-oriented training through our program ‘Fit for Electric Mobility’. The best part is that all trainees will be hired with an open-ended term. This agreement is the first step. By the end of the year we want to safeguard employment for our subsidiaries as well.”

Editors’ Note: Here at PML…We had to read this a couple of times before it really hit home. We think this notion of “keeping people on the job”  bodes well for the continued sustenance of Porsches’ Independent Quality.  In other words, the merger with VW may have been a serious blessing and will go a long ways to ensure the survival of Porsche into the 21st century.

Change in Top Management: Michael Macht Appointed Board Member Production of VW Group

Matthias Müller New Chairman of the Porsche AG Board of Management

Editors Note: Every successful corporation has a common trait. That trait being the premise that “good things start at the top”. Here at PML we’ve been watching the whole VW- Porsche Merger & Acquisition scenario unfold.  We like what we see – so far. The VW Management Team brings a whole new perspective to the long-term outlook at Porsche.  Judging from VW’s success in the global marketplace, Porsche is in a position to become an even stronger, more robust brand that will continue to build interesting products. The Porsche enthusiast community can argue back and forth on the merits (or lack of) of the VW Merger & Acquisition until everyone’s blue in the face…but the bottom line is this: The merger was the best move given the circumstances surrounding Porsche.  We look forward to their continued success.

Stuttgart. Taking effect on 1. October 2010, the Supervisory Board of Dr. Ing. h.c. F. Porsche AG, Stuttgart, has appointed Matthias Müller (57) the new Chairman of the Board of Management of the world-famous manufacturer of premium sporting cars. Müller, moving from Volkswagen AG, Wolfsburg, to the Top Management of Porsche AG, is following in the footsteps of Michael Macht (49) appointed a Member of the Group Board Management of Volkswagen AG by the Supervisory Board. In future Macht will be responsible for the Production Division and, as a result, the control and coordination of all plants within the Volkswagen Group.

Matthias Muller

Previously in charge of Product Planning, Product Management and Model Series for the VW Group and the Volkswagen Brand, Matthias Müller has successfully promoted the development of Product Lines in the last three years within the VW Group. “Matthias Müller gives us the exceptional competence of an outstanding product expert benefiting the interaction of independent brands within an Integrated Automotive Group leading the market worldwide. Contributing this knowledge, he guarantees that Porsche, as a world brand, will not only maintain, but further expand its top position”, states Dr. Wolfgang Porsche, Chairman of the Supervisory Board of Porsche AG, on the appointment of Müller, who hails from the town of Chemnitz in Eastern Germany.

Dr. Porsche also expresses great praise for the outstanding services of the former Chairman of the Board of Management: “Michael Macht took over the leadership of Porsche AG in a period crucial to the Company. Through his skill and many years of experience within the Porsche Group, he has succeeded in restabilising the Company within a short time, placing our operations on a strong and solid foundation. Concluding the Fundamental Agreement between Porsche Automobil Holding SE and Volkswagen AG, Michael Macht has played a significant role in setting out the ongoing schedule for our fully Integrated Automotive Group.”

The Chairman of Porsche AG’s Group Works Council, Uwe Hück, also congratulated the former Chairman of the Board of Management: “I wish Michael Macht all the very best and lots of success in his new position on Volkswagen’s Group Board. I know that in future the people at Porsche will remain close to him and that he will continue to work all-out to use the full capacity of our plants in Zuffenhausen and Leipzig to the benefit of the Company.

Hück also bid a warm welcome to the new Chairman of the Board of Management of Porsche AG: “From numerous talks with Matthias Müller I know that he will maintain Porsche’s unique and independent position also in future. Precisely this makes him the right man for us representatives of the workforce, which is why we give him our full support. We already see him today as a genuine “Porsche man” enabling us to really push down the throttle at all our plants. I am confident that the workforce will work well and successfully with Matthias Müller to the benefit of the Porsche Company as a whole.”

620 Highly Efficient Turbo-Horsepower: Most Powerful Street-Legal Porsche of all Times

Stuttgart. The time: seven minutes, 18 seconds on the Nürburgring-Nordschleife. The power: 620 hp. The weight: 1,370 kilograms or 3,021 lb in road trim with all fluids on board. The car: the new Porsche 911 GT2 RS. The GT2 RS is making its world debut at the Moscow Auto Show on August 25th.

The future top GT model marking the absolute climax in the 911 range is the fastest and most powerful road-going sports car ever built in the history of Dr. Ing. h.c. F. Porsche AG, Stuttgart. With power up by 90 hp and weight down by 70 kilograms or 154 lb in comparison with the 911 GT2, the new 911 GT2 RS has a power-to-weight ratio of just 2.21 kilos or 4.9 lb per horsepower, by far the best power/weight ratio in its class. Obviously, these are the ideal ingredients for an ultra-high-performance sports car with supreme agility, truly blistering performance on the road, and of course exemplary Porsche Intelligent Performance. For despite this extra power and performance, fuel consumption and CO2 emissions versus the 911 GT2 are down by approximately 5 per cent to 11.9 ltr/100 km (equal to 23.7 mpg imp) and 284 g/km.

The 3.6 litre six-cylinder boxer engine boosted by two turbochargers with variable turbine geometry exclusive to Porsche in its combination with a gasoline engine drives the rear wheels via a six-speed manual gearbox. Developed especially for the 911 GT2 RS, sports tyres measuring 325/30 ZR 19 convert this massive power into equally massive performance and acceleration on the road: 0 to 100 km/h in 3.5 seconds, 0 to 200 km/h in just 9.8 seconds, and 0 to 300 km/h in 28.9 seconds. Top speed is 330 km/h.

Equally supreme stopping power on this ultra-high-performance sports car comes from PCCB composite ceramic brakes. Appropriate longitudinal and crosswise dynamics are ensured by the sporting RS set-up of the springs, PASM Porsche Adaptive Suspension Management, anti-roll bars, as well as the dynamic engine mounts and PSM Porsche Stability Management.

In its looks the new 911 GT2 RS stands out clearly from the 911 GT2 above all through the lavish use of carbon-fibre-reinforced (CFR) components in matt-black surface finish, even wider wheels and flared wheel arches at the front, new 911 GT2 light-alloy wheels with central locking, as well as ”GT2 RS“ model designations on the doors and rear lid. The upgraded front spoiler lip and the rear spoiler lip made of CFR and now 10 millimetres or almost 0.4 inches higher, again in surface carbon finish, ensure the right aerodynamic precision as well as extra downforce.

The interior also exudes the flair of sporting performance in virtually every detail, featuring lightweight bucket seats made of carbon-fibre-reinforced plastic in carbon surface finish and lightweight door panels with door opening straps. The basic interior colour is black, contrasting attractively with features such as the seat centre sections and the roof lining as well as segments on the steering wheel rim. The gearshift and handbrake lever are both finished in red alcantara.

Limited to just 500 units, the 911 GT2 RS will be available in Europe from September 2010, in the USA from October 2010. The Euro base price is 199,500.- Euro. Including VAT and national specifications/equipment the new 911 GT2 RS will retail in Germany at a price of 237,578 Euro.

Securities Fraud and Manipulation Lawsuit against Porsche SE expands to more than $2 Billion in Losses

18 Investment Funds join litigation, amended complaint filed

NEW YORK, /PRNewswire/ — On 29 April eighteen investment funds joined the lawsuit against Porsche Automobil Holding SE (”Porsche SE”) and two of its former executives, Wendelin Wiedeking and Holger Haerter, asserting fraud and securities manipulation in relation to Porsche SE’s failed 2008 attempt to take over Volkswagen AG (”VW”). With the addition of the new plaintiffs, the funds — now 35 in number — seek to recover more than $2 billion dollars in losses suffered after Porsche SE triggered what The New York Times called “a short squeeze of historic proportions.”

The Amended Complaint, filed the morning of April 29th in Manhattan federal court, explains in greater detail how Porsche SE manipulated the price of VW stock as it secretly cornered the market in VW shares. According to the Amended Complaint, Porsche SE hid that it was cornering the market in VW’s freely traded shares by repeatedly issuing misleading statements about its activities and by spreading purchases of call options around to several counterparties to avoid detection of its increasing control. The scheme induced the plaintiff funds to establish short positions on VW stock. When Porsche SE suddenly revealed the extent of its true control of VW shares on October 26, 2008, a massive short squeeze ensued. The price of VW shares skyrocketed several hundred percent, briefly topping 1,000 Euros. Investors who had shorted VW lost billions covering their positions in the squeeze. Porsche SE collected outrageous profits at the expense of plaintiffs and others by releasing some of its shares into the market at artificial prices.

The April 29 filing reveals previously unknown details of Porsche SE’s plan. The new allegations include that:

• Less than a week before Porsche SE revealed the truth — that it had amassed control of more than 74 percent of VW’s shares — it conducted phone calls with investment advisors in New York during which Porsche SE sought to reassure the New York-based investment advisors that it was nowhere near 75 percent control. Among the false statements Porsche SE made was that although it would acquire a simple majority of VW shares, “going to 75% is not on the agenda.” Porsche SE told another fund that it would stop acquiring shares after achieving 50–55% control.

• Porsche SE admitted to at least one plaintiff that it was spreading its options trades around to multiple counterparties to avoid detection.

• Porsche SE’s fraudulent strategy deliberately targeted short sellers. In order to secretly obtain 75 percent ownership in VW, Porsche needed short sellers to borrow stock from owners who would not or could not sell the stock themselves and then to sell it to Porsche or Porsche’s call-option counterparties. Without the additional supply created by short sellers, Porsche could never have gained control of 75 percent.

• Porsche SE financed its call-option strategy in part through selling put options. As the price of VW declined in the third week of October 2008, Porsche SE’s liability on the puts it had sold threatened to force the company into bankruptcy. It avoided this threat by forcing the price of VW up, which it accomplished by announcing its call-option position on October 26, triggering the squeeze.

The case is pending in the Southern District of New York, where it is captioned as Elliott Associates, L.P., et al, v. Porsche Automobil Holding SE, et al, No. 10-civ-532 (HB)(THK).

The funds are represented by Bartlit Beck Herman Palenchar & Scott LLP (see www.bartlit-beck.com) and Kleinberg, Kaplan, Wolf & Cohen, P.C. (www.kkwc.com).

SOURCE – Elliott Associates, L.P

Favorable operational trend of the holdings Porsche and Volkswagen

Stuttgart. Porsche Automobil Holding SE, Stuttgart, can report a favorable operational trend of its holdings in the first half of the 2009/10 fiscal year ending 31 July 2010. The Porsche Zwischenholding GmbH group including mainly the Porsche AG recorded in the reporting period a double-digit return on sales with an operating profit of 329 million euro. Revenue increased by 3.7 percent in relation to the comparative period of the prior year to 3.16 billion euro. Unit sales fell 1.7 percent to 33,670 vehicles. The Volkswagen group has been included in the half-yearly financial report of the Porsche SE with the result for the period from 1 July 2009 to 31 December 2009. On this basis, the Volkswagen group sold 3,302,144 vehicles in the first half of the 2009/10 fiscal year. With revenue of 54.0 billion euro, the operating profit comes to 615 million euro.

As already announced, the Porsche SE still expects negative earnings before tax for the 2009/10 fiscal year. This will include several accounting effects, some of which will offset each other. The effects are due, among other things, to the deconsolidation of the Volkswagen group as of 3 December 2009 and deconsolidation of the Porsche Zwischenholding GmbH group as of 7 December 2009 as well as to accounting for the two groups using the equity method in the consolidated financial statements of Porsche SE. These structural changes were already reflected in Porsche SE’s six-month report as of 31 January 2010, which reports a group profit after tax of 871 million euro.

The profit of Porsche SE is expected to be reduced by various factors in the second half of the 2009/10 fiscal year because it is not participating in the capital increase planned by Volkswagen AG for the first half of 2010. The extraordinary general meeting of Volkswagen AG had adopted a resolution on 3 December 2009 to create authorized capital and issue up to 135 million new preference shares. The extent of dilution of Porsche SE’s share in capital of Volkswagen AG and the associated impact on earnings will depend on the form that the capital increase takes and will also be influenced by the number of new preference shares in Volkswagen issued and their issue price. It will not affect liquidity. Assuming that the capital increase takes place before 31 July 2010 as scheduled, forecasts are for Porsche SE to incur a loss for the 2009/10 fiscal year as a whole of a low single-digit billion-euro figure.

Via Porsche Zwischenholding GmbH, Volkswagen AG assumed a 49.9 percent shareholding in Porsche AG in the course of a capital increase. Porsche SE received cash of approximately 3.9 billion euro as a result, which was mainly used to repay debts. The level of net debt at Porsche SE – not taking into consideration the Porsche Zwischenholding GmbH group and the Volkswagen group – improved to 6.1 billion euro as of 31 January 2010.

Porsche Zwischenholding GmbH group wants to increase sales

The regard of the individual model group series of the Porsche Zwischenholding GmbH including mainly the Porsche AG shows the good start of the new Panamera – sales already reached 8,326 units. The new Porsche model series did not go on sale until September 2009 and in some regions the market launch of the Gran Turismo was not until December 2009. The best selling model series was still the Cayenne, despite the generation change, this spring with 13,454 units sold. This is a fall in unit sales of 19.8 percent on the first six months of the prior year. Unit sales of the 911 came to 7,493 units (down 44.7 percent). Unit sales of vehicles from the Boxster model series, including the Cayman models, recorded 11.3 percent growth to 4,397 vehicles.

An analysis of the sales regions reveals that the situation on the North American market remains difficult. While the unit sales of Porsche there fell by 15.5 percent to 11,113 vehicles, the drop in Europe was just 5.6 percent. The number of vehicles sold in Europe totaled 10,301. In the rest of the world, unit sales of Porsche rose by 20.1 percent to 12,256 vehicles.

A total of 40,685 vehicles were produced, which represents a decrease of 2.4 percent. 16,904 units of the Cayenne and 9,786 of the new Panamera rolled off the assembly line in the reporting period. The number of 911 vehicles produced came to 8,764. Production of the Boxster series totalized 5,231 units. Porsche continues to assume that unit sales for the full fiscal year 2009/10 will exceed the prior-year figure of 75,238 vehicles.

Volkswagen group optimistic for the future

The number of Volkswagen brand passenger cars sold came to 1,808,766 in the first half of the 2009/10 fiscal year. The Golf was the mainstay of sales. Demand for the Fox, Polo, Gol, Tiguan and Passat CC models also developed favorably. Unit sales of the Audi brand in the period stood at 615,769. Sales figures were particularly pleasing for the models from the Audi A3 Sportback series and the Audi A6 sedan. The Škoda brand sold 289,244 vehicles in the first half of 2009/10. The Fabia and Superb models saw increased demand. The new Škoda Yeti was well received by the market. In the first half of 2009/10, unit sales of the SEAT brand came to 161,118 vehicles. Units sales of the Bentley brand in the reporting period came to 2,316 vehicles. The Chinese joint venture boosted unit sales by 779,183 vehicles. Volkswagen commercial vehicles sold 140,099 units in the first half of 2009/10. Scania’s sales totaled 22,776 vehicles.

In the region of Europe/other markets, the Volkswagen group achieved unit sales of 1,730,018 vehicles in the first six months of 2009/10. In North America, unit sales amounted to 238,595 vehicles. Unit sales in South America in the first half of 2009/10 came to 434,245 vehicles, a figure positively impacted by the Brazilian government’s support package. Including the joint ventures in China, the Volkswagen group sold 899,286 vehicles on the passenger car markets in the Asia Pacific region in the first six months of the 2009/10 fiscal year.

In the first half of the 2009/10 fiscal year, the Volkswagen group produced 3,232,180 vehicles worldwide. Production volume was adjusted to the ongoing critical market situation.

The Volkswagen group’s presence in all major regions of the world, its multi-brand strategy and technological expertise and, as a result, the youngest, most environmentally friendly and widest range of vehicles are key success factors. The nine brands of the Volkswagen group will present a large number of new models in calendar 2010, continuously expanding the group’s position on the world’s markets in the process. The Volkswagen group therefore expects the number of vehicles delivered to customers in 2010 to exceed the 2009 level.

With the half-yearly financial report for the financial year 2009/10, the Porsche SE presents for the first time its figures as a financial holding company, whose substantial holdings represent the Volkswagen AG and the Porsche Zwischenholding GmbH group. As the next step on the way to the integrated automotive group is planned the implementation of a capital increase at the Porsche SE in the first half of 2011.

Plans are to reach the final stage in creating an integrated automotive group, namely the merger between Porsche SE and Volkswagen, following the capital increase. The combination of Volkswagen and Porsche in a group with ten strong brands has compelling strategic, industrial and financial logic. The integrated group is expected to be able to realize considerable additional growth in future.

]]> http://www.pmletter.com/blog/2010/05/08/porsche-se-favorable-fiscal-year-2010/feed/ 1 http://www.pmletter.com/blog/2010/04/29/porsche-appoints-maier-altrichter-to-new-senior-positions/ http://www.pmletter.com/blog/2010/04/29/porsche-appoints-maier-altrichter-to-new-senior-positions/#comments Thu, 29 Apr 2010 20:02:25 +0000 Thom http://www.pmletter.com/blog/?p=3573

Bernhard Maier Appointed Board Member Sales and Marketing of Porsche AG

Stuttgart. In a recent session  the Supervisory Board of Dr. Ing. h.c. F. Porsche AG, Stuttgart, appointed Bernhard Maier (50) to the Board of Management of the manufacturer of sporting premium cars. Maier, previously Chairman of the Management of Porsche Deutschland GmbH, Bietigheim-Bissingen, is assuming the top position in the Sales and Marketing Division with immediate effect. Klaus Berning, the previous Board Member Sales and Marketing, is leaving the Company with immediate effect at his own request.

Maier has been closely connected to the automobile ever since his youth, first completing his training as a car mechanic and then, after obtaining his full qualification as a master mechanic, studying business management in the town of Calw near Stuttgart. After working for Nixdorf, Maier joined the BMW AG sales organisation in 1988, assuming various top positions in Germany and abroad. In June 2001 Maier joined Porsche, where he successfully managed the Company’s domestic sales subsidiary. His most significant responsibilities so far include the ongoing optimisation of processes in sales management as well as the development of new systems and the establishment of a consistently positive position for the Porsche brand in the Company’s home market. Further highlights in Maier’s term in office as the Managing Director of Porsche Germany were the successful introduction of two new model series: the Cayenne Sports Utility Vehicle in 2002 and the Panamera Gran Turismo in September of last year.

Bernhard Maier

Stephan Altrichter appointed the new head of Porsche Schweiz AG

Stuttgart . Dr. Ing. h.c. F. Porsche AG, Stuttgart, has appointed Stephan Altrichter (47) as the new head of Porsche Schweiz AG. Altrichter, who was previously the managing director of the Berlin and Potsdam Porsche centre, will assume management of the Swiss sales subsidiary for the premium sports car manufacturer effective immediately. He is replacing Thomas Lamperstorfer who left the company of his own request. Altrichter will be succeeded in Berlin by Stephan Blässing (45), the previous head of the Porsche Center in Düsseldorf.

Stephan Altrichter

Stephan Altrichter held various positions with Mercedes-Benz AG and Daimler-Chrysler AG between 1989 and 1999, managing, among other things, the Mercedes-Benz office in New York. With a degree in business and engineering, he also worked for AT Kearney and Bain & Company as a corporate consultant. With a background in wholesale, retail, and export, Stephan Blässing was the director of sales at Mercedes-Benz Magdeburg prior to coming to Porsche. From 2007 to 2010, he headed up the Porsche Center in Düsseldorf.