The Porsche Automobile Holding SE anticipates substantial balance sheet adjustments related to its Volkswagen Group investments, signaling significant market challenges ahead. The holding company projects write-downs ranging from 7 to 20 billion euros for its Volkswagen stake, alongside an additional correction of 1 to 2 billion euros for its Porsche AG investment. This development has prompted a dramatic revision of the company’s 2024 financial outlook, transforming previously expected profits of 2.4 to 4.4 billion euros into a projected loss. Despite these accounting adjustments, the holding maintains its commitment to dividend distribution and emphasizes that these changes won’t impact its liquidity position.
Government Support and Market Response
In response to the challenging situation, the federal government is extending short-time work regulations to a maximum of 24 months, aimed at preserving employment across various locations and preventing job cuts. The market has shown resilience in the face of these developments, with Volkswagen’s stock maintaining levels well above its 52-week low of 78.86 euros. The company’s net debt forecast remains stable at 5.0 to 5.5 billion euros, suggesting underlying financial stability despite the current valuation challenges.
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Volkswagen Stock: New Analysis – 15 December
Fresh Volkswagen information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.
Read our updated Volkswagen analysis…
The Porsche Automobile Holding SE anticipates substantial balance sheet adjustments related to its Volkswagen Group investments, signaling significant market challenges ahead. The holding company projects write-downs ranging from 7 to 20 billion euros for its Volkswagen stake, alongside an additional correction of 1 to 2 billion euros for its Porsche AG investment. This development has prompted a dramatic revision of the company’s 2024 financial outlook, transforming previously expected profits of 2.4 to 4.4 billion euros into a projected loss. Despite these accounting adjustments, the holding maintains its commitment to dividend distribution and emphasizes that these changes won’t impact its liquidity position.
Government Support and Market Response
In response to the challenging situation, the federal government is extending short-time work regulations to a maximum of 24 months, aimed at preserving employment across various locations and preventing job cuts. The market has shown resilience in the face of these developments, with Volkswagen’s stock maintaining levels well above its 52-week low of 78.86 euros. The company’s net debt forecast remains stable at 5.0 to 5.5 billion euros, suggesting underlying financial stability despite the current valuation challenges.
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Fresh Volkswagen information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.