A first-quarter profit was reported for the first quarter of 2011 by Porsche Automobil Holding SE, the holding company that owns 51% of Volkswagen AG's common shares. The gain is being attributed to higher earnings at VW and its sports-car business.
In a statement, Porsche revealed that its net income was 691 million euros ($1.03 billion). Porsche, which posted quarterly earnings for the first time ever, declined to provide a comparison figure.
On April 27, the Volkswagen group reported record earnings before interest and tax of 2.91 billion euros. Porsche asserts that its operating profit has more than doubled to 496 million euros.
In August 2009, Porsche agreed to combine with VW in August 2009. It’s possible that the merger will be delayed until 2012 due to German investigations into Porsche share-price manipulation and U.S. lawsuits. Earlier this month, Porsche raised 4.9 billion euros in a rights offering.
This share sale is used to reduce cut debt and facilitate its merger with VW. The share sale will be used to reduce debt and facilitate the merger with VW. The carmaker said that liabilities at the end of March amounted to 7 billion euros.
Porsche and VW agreed to merge after Porsche incurred over 10 billion euros in debt in its failed effort to gain control of VW. Hans Dieter Poetsch, chief financial officer at both VW and Porsche, said earlier this week that Volkswagen is satisfied with the progress of integration and still anticipates a 50 percent chance that the deal goes through this year.