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Fiscal 2007 net profit of Porsche AG more than triples

Porsche AG's net profit for fiscal 2007 more than tripled with help from a revaluation of its 22 percent stake in Volkswagen AG and strong results from its core business.

Porsche said it earned 4.24 billion EUR(US$6.18 billion) for the full year, up from 1.39 billion EUR a year earlier. The revaluation resulted in a one-time addition of 520.80 million EUR(US$759.27 million).

Pretax profit for the year ended July 31 more than doubled to 5.86 billion EUR(US$8.54 billion) from 2.11 billion EUR in the prior fiscal year.

The Stuttgart-based automaker said the earnings contribution of its core business improved compared with last year, excluding special factors such as a "high three-digit million euro development expenditure" for Porsche's fourth model series, the Panamera, and for the hybrid drivetrain of the Cayenne sport utility vehicle. Another factor was the weaker level of hedging rates versus the U.S. dollar.

Porsche said in September that sales for fiscal 2007 rose 3.4 percent on the year to 7.4 billion EUR(US$10.79 billion), helped by a better model mix. Car sales for fiscal 2007 totaled 97,515 compared to 96,794 a year earlier, the company said at the time.

Porsche proposes to increase its dividend to 21.94 EUR(US$31.99) per common share from 8.94 EUR last year and 22.00 EUR(US$32.07) per preferred share from 9.00 EUR in fiscal 2006. This will raise the total dividend payment to 384 million EUR(US$559.8 million) for fiscal year 2007 after 157 million EUR last year.

Shares in the Stuttgart-based company initially jumped on the news of the dividend, then plunged 8.52 percent to 1,570 EUR(US$2,288.90) after the company announced it would suggest splitting the stock into 10 shares for each one now held at its next general annual meeting.

That is scheduled for Jan. 25 in Stuttgart.

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