The German holding company Porsche SE, which has a majority stake in Volkswagen, has announced its second-quarter after-tax profit climbed 17%. The company also stood by its full-year predictions and said it would go ahead with planned acquisitions.
After Porsche SE sold its Porsche AG car-making unit to Volkswagen AG in 2012, following a long and disputed takeover (we still have news today about lawsuits surrounding the move), the holding has to manage only a single asset stake today – the one it holds in VW.
VW’s after-tax group profit rose 14% to 3.25 billion euro for the April to June period, and Porsche SE posted for the same time frame a quarterly after-tax profit increase, up from 868 million euros a year ago to 1.01 billion euros ($1.35 billion).
The holding company said – without providing specific details – its plan is to spend most of its current cash (2.54 billion euros) on future acquisitions. The Stuttgart-based company did disclose the buyouts would target small and mid-sized enterprises, with a possible orientation towards drivetrains and safety technology “along the automotive value chain”.
Porsche SE is controlled by the Porsche and Piech families, and the company reiterated its forecasted target for 2014, with a guidance for the full-year after-tax profit of 2.2 billion to 2.7 billion euros, up from 2013’s 2.41 billion euros.