VW causes fall in Porsche profits

Profits at Porsche, which owns a controlling stake in Volkswagen, have plunged in the wake of the diesel emissions scandal at VW.

Porsche’s pre-tax profit more than halved to €1.19bn (£841m) for the nine months to 30 September.

The luxury carmaker warned last month that profits would be hit by the revelations, which affect 11 million vehicles produced by the VW group.

Porsche now expect to make a net profit of between €800m and €1.8bn this year, significantly lower than the €3.03bn profit Porsche posted for 2014.

Porsche owns 30.8% of VW’s shares. Last month, VW reported its first quarterly loss for at least 15 years after setting aside €6.7bn to cover the scandal.

The company, which is controlled by the Porsche and Piech families, said that future profit guidance could change depending on the outcome of the investigation.

In a statement the firm said, ‘As the majority shareholder, Porsche SE is affected by developments at the level of the Volkswagen Group.’

Shares in Porsche rose increased 0.6% to €40.01 in Frankfurt, while VW shares fell 1% to €95.51. The value of VW stock has halved in the past three months in the wake of the scandal.