Porsche Automobil Holding SE posted EUR728 million in group profit in the first quarter of 2014, compared with EUR601 million in the same period in 2013. The company mainly attributed the surge to the investment accounted for at equity in Volkswagen AG of EUR732 million.
The company saw its equity drop to EUR28.52 billion at end of March 2014, from EUR30.47 billion at end of December 2013. Porsche SE had net liquidity of EUR2.60 billion as of March 31, 2014, compared with EUR2.61 billion as of December 31, 2013.
The amount, however, does not include dividend for the fiscal year 2013 that the company received from Volkswagen AG in May 2014.The first quarter of 2014 marked a significant legal period for Porsche SE, after the Regional Court of Stuttgart dismissed in March a claim filed by hedge funds in the United States for around EUR1.6 billion, plus interest.
Nineteen of the 23 plaintiffs filed appeals against the ruling of the regional court with the Higher Regional Court of Stuttgart. As a result, the total amount of damages claimed in the proceedings has dropped to EUR1.18 billion (plus interest). The Regional Court of Braunschweig in Germany is hearing five current cases regarding the matter.
The Regional Court of Braunschweig said it will issue rulings in three of the proceedings on July 30, 2014. Just like in 2013, the group profit or loss of Porsche SE for the current fiscal year will heavily rely on its investment in the Volkswagen group, which is accounted for at equity attributable to the company. Based on the current group structure, Porsche expects to post a group profit of between EUR2.2 billion and EUR2.7 billion for 2014. [source: Porsche]