Porsche reported an increase in 2012 net income after it sold to VW the remainder of its automaking business.
Porsche’s profit increased to 7.83 billion euro ($10.1 billion) in 2012 from 59 million euro in 2011, according to the company’s statements. The automaker received a 4.49-billion-euro cash flow from selling the final 50.1% of its auto unit to VW. The holding company, which has as sole asset VW’s shares, proposed a dividend for last year of 2.00 euro per ordinary share and 2.01 euro per preferred share. Porsche said it expects ‘profit in the low single-digit billion-euro range’ this year.
VW signed the agreement for Porsche’s sports- car business acquisition in August, ending a seven-year struggle to turn the table on the 911 producer. With this last acquisition, VW assumed full ownership of the Porsche auto brand. Porsche will remain a holding company with 50.7% stake in Volkswagen’s common stock.
In 2012 Porsche paid 2 billion euro in bank debt and said that it planed to use proceeds resulted from this transaction for investments “along the automotive value chain,” which includes real estate and energy trading. Yesterday, March 13th, as of 3:45 pm in Frankfurt, Porsche’s shares increased 2.7% (1.70 euro) to 64.50 euro.