Media Report: Porsche to Book Profits Higher than Turnover
July 26, 2008
Der Spiegel news magazine said the unusual accounting situation would result from the revaluation of the 31-percent Volkswagen stake. Porsche would report profits of more than 11 billion euros ($17 billion) on turnover of just 8.6 billion euros.
Porsche would earn a relatively minor 1.2 billion euros from the sale of its own vehicles, while options and dividends from VW would also contribute to the profits, Der Spiegel said.
It speculated that Porsche boss Wendelin Wiedeking could take home a 100-million-euro pay package. Wiedeking's reported 60 million euros last year provoked widespread comment in Germany, most of it negative.
Porsche has encountered opposition from the German state in its lengthy battle to seize control of VW.
The state of Lower Saxony, where VW's Wolfsburg headquarters are situated, has a 20.3-percent stake, and a special provision in German law allows it to block major decisions. Usually 25 percent is required.
The European Court of Justice ruled against the special provision in October last year, and the European Union has urged the German government to review the legal position.