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Report: Porsche to post $17 billion profit, exceeds revenues

Report: Porsche to post $17 billion profit, exceeds revenues

Nelson Ireson July 30th, 2008 Nelson Ireson By Nelson Ireson Author July 30th, 2008
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December 31st, 1969 On revenues of $13.3 billion, Porsche is expected to report a profit of $17.05 billion for the 2007 fiscal year. How a company manages to make more money than it takes in is a technicality of accounting, but the result is no less staggering. The upside-down figures are due to a revaluation of the company's stake in Volkswagen. Proper profit from the sale of its automobiles is expected to amount to about $1.86 billion once the report is revealed some time after July 31, the end of the company's fiscal year, reports Forbes. That's still a very solid outcome in a market that has proven difficult for more volume-oriented carmakers. Fellow performance car manufacturer Lamborghini recently announced record profits as well, however, indicating that the buying habits of the wealthy have been largely unaffected by the oil price surge. Porsche's holding of VW stock is the driving force behind the massive profit figure, however, and Porsche has recently announced plans to acquire even more. The wisdom of the business decision from Porsche's standpoint is difficult to deny, though many enthusiasts are worried about the impact the purchase may have on VW Group subsidiary lineups, like those of Audi or even Lamborghini itself.
Report: Porsche to post $17 billion profit, exceeds revenues

Report: Porsche to post $17 billion profit, exceeds revenues

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On revenues of $13.3 billion, Porsche is expected to report a profit of $17.05 billion for the 2007 fiscal year. How a company manages to make more money than it takes in is a technicality of accounting, but the result is no less staggering. The upside-down figures are due to a revaluation of the company's stake in Volkswagen.

Proper profit from the sale of its automobiles is expected to amount to about $1.86 billion once the report is revealed some time after July 31, the end of the company's fiscal year, reports Forbes. That's still a very solid outcome in a market that has proven difficult for more volume-oriented carmakers. Fellow performance car manufacturer Lamborghini recently announced record profits as well, however, indicating that the buying habits of the wealthy have been largely unaffected by the oil price surge.

Porsche's holding of VW stock is the driving force behind the massive profit figure, however, and Porsche has recently announced plans to acquire even more. The wisdom of the business decision from Porsche's standpoint is difficult to deny, though many enthusiasts are worried about the impact the purchase may have on VW Group subsidiary lineups, like those of Audi or even Lamborghini itself.

Tags: Industry

Posted in: Porsche, News


Comments (6 total)

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  1. By Gus #1, Posted: 7/30/2008

    Well, they make an excellent product, so why not.
    I see so many Porsche's running around here (maybe because I live next door, literally, to a dealer) that it doesn't surprise me. There are three Carrera's and one Cayman sitting next to my car in the garage of my apartments (no Cayenne's, thank goodness :) )

  2. By misc #2, Posted: 7/30/2008

    you're right gus.. i see so many down here in south OC.. they know how to make relevant products..that is for people who have the cash :p

  3. By --Graham-- #3, Posted: 7/30/2008

    will porsche has been #1 in qualtiy for all automakers for the last 3 years, so it is not surprising that they make massive profits while others are recording billion dollar loses.

  4. By NoNameDenton #4, Posted: 7/30/2008

    If Porsche applies their business knowledge to VW after the take over VW might actually make their sales goals in North America and boost their profitablity.

  5. By CarFan #5, Posted: 7/31/2008

    I have no problem with the change in ownership from VW to Porsche. Although I think Porsches are great cars I would much prefer an R8 over any 911 regardless of performance. The 911 styling is the oldest in the business and while it may work for Porsche fans, it does not work for me, I find Audi's design much more refreshing, modern and beautiful. I hope Porsche does not derail Audi's progress in this area.

    On the other hand, assuming Porsche does good with its promise to improve quality and efficiency throughout VW, I don't see how Toyota could compete with VW. VW has much nicer styling, more revolutionary technology, the highest resale value and would have higher quality and reliability - which is what has plagued VW for years.

    Lastly, my message to Porsche: keep Audi independent.

  6. By CitizenZ #6, Posted: 8/2/2008

    I would love if Porsche kept out of owning competing brands. Porsche is either competing directly or tangentially with Audi, Bentley, Lamborghini, and even Bugatti. I absolutely love Porsche but, the idea that Porsche is going to dumb down products from those other manufacturers makes me sick.

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