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Articles from the Associated Press (AP) business and money section. The AP is the largest American news agency. The AP is a cooperative owned by its contributing newspapers, radio and television stations in the United States, which... [more]

Articles from the Associated Press (AP) business and money section. The AP is the largest American news agency.

The AP is a cooperative owned by its contributing newspapers, radio and television stations in the United States, which both contribute stories to the AP and use material written by its staffers.

Porsche's profit soars on VW stake

Vw_logo_7 Porsche_logo_6



Luxury car maker Porsche SE said Friday its profits soared by 52 percent in its latest fiscal year — driven higher by gains in its stake in Volkswagen AG, Europe's biggest automaker.

The Stuttgart-based maker of the 911 sports car and the Cayenne sport utility vehicle reported a net profit of nearly 6.4 billion euros ($8.2 billion) for the year that ended July 31. That compared to the 4.2 billion euros it earned in the 2006-2007 year. The company does not release quarterly results.

Porsche shares rose by nearly 10.4 percent in Frankfurt trading, reaching 69.55 euros ($89.42).

Carrera GT

Despite the large gain, the company said results were weighed down by development costs related to its upcoming Panamera line, along with work on a hybrid drive for the Cayenne and more fuel-efficient engines.

Its pretax profit for the 2007-2008 year was nearly 8.6 billion euros ($11 billion) — a 46 percent gain from the previous year's 5.8 billion euros.

The company said that the "above-average jump in profit was again due to special influences in connection with the holdings in Volkswagen AG."

Porsche said its stake in VW added some 6.8 billion euros ($8.7 billion) to its pretax profit — compared with 3.6 billion euros a year earlier.

At the end of the fiscal year, Porsche held 22.3 percent of all VW shares. Since then, Porsche has lifted its stake in the Wolfsburg-based company to just shy of 43 percent.



911 Turbo

Late last month, it announced it had taken options for another 31.5 percent — causing VW shares to rocket to as much as 1,005 euros ($1,292) and leaving short-sellers grasping at straws as they tried to close their positions.

On Friday, Volkswagen shares stood at 400.25 euros ($514.59), a 0.9 percent gain on the day.

Porsche has said it intends to raise its VW stake to as much as 75 percent, giving it effective control of the automaker whose brands include VW, Seat, Skoda, Bentley, Audi, Lamborghini and Bugatti.

Looking ahead, the company said it was in a good position but warned that it was "very difficult to make reliable statements on the course of the current business year as a whole because of the current economic situation, which is extremely tense due to the U.S. mortgage crisis and the financial market crisis."

It said Porsche would act cautiously and "if necessary, respond flexibly to any further economic upheavals."

Porsche has already reported that its sales for the 2007-2008 fiscal year rose by 1.3 percent, powered by strong demand for the Cayenne SUV, to 7.5 billion euros ($9.6 billion).

Unit sales increased by a similar amount — 1.2 percent — to 98,652 vehicles.

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http://www.porsche-se.com

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Editor's Note: check out more in Zimbio's automotive section.

Ferrari FXX-$2.5 Million


Koenigsegg CCXR-$2.2 Million


Bugatti Veyron Pur Sang-$1.8 Million


Maserati MC12 Corsa-$1.5 Million


Lamborghini Revention-$1.495 Million


Ferrari Enzo-$1 Million


SSC Ultimate Aero-$650,000


Leblanc Mirabeau-$645,000


Saleen S7-$550,000


SLR McLaren 722-$495,000

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Comments
it good to here that Porsche's profits are soaring amidst the global economic crisis, it goes to show that people are still buying luxury cars. I just hope the can sustain this one.
Man the research on new models have cost them a lot and irrespective of that their profit is too good... eagerly waiting to see what they have been developing.. keep posting :)

The rich get richer!


Well I guess it's true..... The Rich are Different.

At a time so many of us are trying to make do with less, and watching each expenditure; one would think that putting off the purchase of a $100,000 toy would be an easy call. Clearly it it does not require the tough moral choices such as pulling your child out of college, or choosing between your needed meds or food.
It seems that many Porsche owners are excempt from such mundane concerns. 

 With the stock market in free-fall Banks around the world poised for collapse, and our elected officials talking about a trying to avoid a worldwide depression: I just received an email from Bentley telling me about their new, more deluxe version of the Arnage.

I'm not sure what is wrong with their marketing team that they believe that I might be a possible customer, but it is fun to pretend.

They begin by telling me how the auto is very exclusive. and that they will limit the edition to just 150 cars worldwide. This is truly good to know, otherwise I would expect to see one of these $275,000 cars parked in every driveway.
"Through a combination of commitment and timeless tradition, the Arnage Final Series is destined to become a true British classic".

"The sumptuously crafted interior of the Arnage Final Series features a waistrail with inset chrome strip and recessed Bentley marque badges, a leather steering wheel that has taken more than 15 hours of hand stitching, along with a burr walnut cocktail cabinet and veneered picnic tables."
When I read the car comes with a "Burr walnut veneered picnic tables", I can't help but find it difficult to picture the passengers actually making their own lunch. I find the image of the "Staff" preparing this "Picnic". Perhaps, the very thought that I would object to someone eating in my new $275,000 car, proves I can't afford to own one of these automotive works of art.

Of course I am not surprised by the fact the car sips gas at a rate of 9.8mpg Urban, clearly, the cost of petrol is beneath concern. That said I am a bit surprised by some of the options that do not come as standard equipment. For example the Silk Curtains to Rear Compartment will set you back an additional $9,490. And what's the use of having the curtain with out having a need for privacy, like maybe when you use the Entertainment Combination system that can be added for just $34,290.

Max. Speed 179mph / 288km/h
Acceleration 0 - 60mph 5.2 seconds
Acceleration 0 - 100km/h 5.5 seconds
Acceleration 0 - 100mph 12.1 seconds

The thing about buying a car like this is that you are buying into a "Lifestyle"
So how can you just skip over the matching luggage (sold separately)
For example this bag can be yours for just $2,500.

Well with all of the forclosures, Pink slips and general hard times that we find ourselves in today, it is nice to know that there will always be those that have a different set of problems; like should I buy the car in black or silver.
Larry Lubell
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