Porsche Holding Posts Profit As Earnings Outweigh Book Loss

Porsche Automobil Holding SE (PAH3.XE) said Monday it posted a first-quarter profit after tax of EUR327 million as earnings worth EUR1.17 billion from its holdings in Volkswagen AG (VOW.XE) and the Porsche sports car unit more than offset a EUR810 million non-cash charge triggered by a revaluation of options.

Porsche's holding company reiterated it expects to remain in the black in 2012 despite possible charges through the option revaluation, and confirmed it still aims to forge an integrated company with Volkswagen.

"Porsche and Volkswagen still aim to achieve the integrated automotive group," Porsche said in a statement, adding that "both companies continue to examine whether alternatives to the measures provided for in the basic agreement are available."

The revaluation of options to sell its remaining 50.1% stake in its core sports car business to Volkswagen shaved EUR4.37 billion from Porsche Holding's earnings last year.

Chief Financial Officer Hans Dieter Poetsch said in March he expects another one-off effect related to the option valuation to occur in 2012, but it is uncertain if it will be negative or positive. Poetsch noted, however, that the earnings impact will be "considerably smaller than in 2011."

-By Christoph Rauwald, Dow Jones Newswires; [phone]; [e-mail]