Porsche Holding Might Post Full-Year Loss Due To Book Loss

Porsche Automobil Holding SE (PAH3.XE) Friday posted a EUR462 million after-tax loss for the January-to-September period and said it might suffer a loss for the full year as well due to a sizeable book loss on options to sell its sportscar unit to Volkswagen AG (VOW.XE).

"It cannot be ruled out that Porsche SE might incur an overall net loss after tax for ... 2011," Porsche said in a statement.

Porsche didn't provide comparable figures for the prior-year period. Porsche adjusted its fiscal year to the calendar year in 2010.

MAIN FACTS:

- Porsche's holding firm posted a EUR3.42 billion profit from its 50.1% stake in its sportscar unit and the 50.7% stake it holds in Volkswagen, but this was more than offset by a negative non-cash effect of EUR3.7 billion triggered by the revaluation of the put and call options to sell the sportscar unit to VW.

- The revaluation became necessary after Volkswagen and Porsche had to skip their plan to decide on the planned merger this year due to unresolved legal issues.

- Both companies signed an agreement that Porsche's sportscar unit can be integrated into Volkswagen in certain periods between Nov. 15, 2012, and Jan. 31, 2015, with Porsche's holding firm remaining a separate entity for the time being.

- Porsche said the plan for a merger with Volkswagen, including Porsche's holding firm, remains unchanged.

- Porsche reiterated that both companies are examining alternative ways for a possible merger.

- In October, Porsche concluded a new syndicated loan agreement. The new syndicated loan has a volume of up to EUR3.5 billion and comprises a loan tranche amounting to a nominal amount of EUR2 billion as well as a revolving line of credit of up EUR1.5 billion.

- The new refinancing package will reduce Porsche's interest expenses in the future.

- Porsche net debt stood at EUR1.51 billion as of Sep. 30.

 
-Frankfurt Bureau, Dow Jones Newswires; 49-69-29725-500