By Rachel More
BERLIN (Reuters) -A crisis at luxury carmaker Porsche AG hit earnings at its top shareholder Porsche SE in the first nine months of the year, with adjusted profit after tax falling by more than a third, the holding company said on Tuesday.
Porsche SE, controlled by the Porsche and Piech families, owns 12.5% of carmaker Porsche AG, with much of the rest held by the Volkswagen Group. It is also Volkswagen Group’s top investor, with 31.9% of shares and 53.3% of voting rights.
In the January to September period, Porsche SE reported adjusted earnings after tax of 1.6 billion euros ($1.87 billion), down 36% on the previous year.
It said the result was “significantly influenced” by problems at Volkswagen and Porsche AG, which are facing billions in costs this year after the luxury carmaker delayed an electric vehicle rollout as it scrambles to stem falling demand in China.
Porsche SE finance chief Johannes Lattwein said however that the holding company had improved its financing structure, making it resilient “even in the challenging environment in the automotive industry”.
The group’s net debt fell by 3% in the nine-month period to 5 billion euros.
Porsche SE maintained its full-year guidance following its last profit warning in September due to the Porsche strategy overhaul.
The group has said it is exploring defence investments to diversify its portfolio, looking to cash in on a ramp-up in government spending in that area.
While defence companies like Rheinmetall fill their order books, Germany’s auto industry is struggling to stay on track amid an expensive transition to EVs, stiff competition from China, tariffs and supply chain shocks.
($1 = 0.8575 euros)
(Reporting by Rachel More, Editing by Miranda Murray and Jan Harvey)
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