Porsche makes profit....
 

At a time when most automakers are struggling with a sharp downturn, making a €8.586 billion profit (before taxes) in the fiscal year 2007/2008 that ended on July 31 definitely comes to a surprise - especially when we're talking about a company of the size of Porsche. The prior-year figure had been €5.857bn meaning that Porsche's net profit jumped a whopping 46%. But what's even more startling is the fact that the German automaker reported that from the €8.586bn it earned in the 2007/2008 fiscal year, less than €1bn was attributable to operating profits from its car division. So where did the €7.8bn come from?

Well, believe it or not, Porsche made an astonishing €6.83bn from trading in VW shares, and a further €1bn from the rising value of its Volkswagen stake which was 22.3% in July! Porsche currently owns a direct stake in VW of 42%, and controls about 32% more via stock options. In terms of selling cars, Porsche's turnover was about €7.5bn or €1.4bn less than the firm's overall net profit in the same fiscal year...

Business year, 2007/08, 2006/07

Profit before taxes, EUR 8.569 billion (+ 46 %), EUR 5.857 billion

Profit after taxes, EUR 6.392 billion (+ 51 % ), EUR 4.242 billion

Turnover, EUR 7.466 billion (+ 1.3 %), EUR 7.368 billion

Sales, 98,652 vehicles (+ 1.2 %), 97,515 vehicles

US automakers takes note.

Wendelin Wiedeking is no coincidence.

yep they sure do know how to run a business......

Well i guess this goes to show you that luxury goods manufactures are somewhat sheltered from recessions.

I wouldn't quite say that, it's more the fact that Porsche is run by savvy business men. And as stated, thier control of VW is really the reason why they're doing so well.

"Well, believe it or not, Porsche made an astonishing €6.83bn from trading in VW shares, and a further €1bn from the rising value of its Volkswagen stake which was 22.3% in July! Porsche currently owns a direct stake in VW of 42%, and controls about 32% more via stock options. In terms of selling cars, Porsche's turnover was about €7.5bn or €1.4bn less than the firm's overall net profit in the same fiscal year..."

They are good investors...

LOL my bad, I just remembered a article about how the truly wealthy are more or less unaffected by a "market crash" and pretty much go on with life as usual.