Porsche SE Faces Billions in Write-Downs Due to Volkswagen Uncertainty

The holding company revises its profit forecast to a significant loss, citing delayed planning and lower valuations for its VW and Porsche AG stakes.

Porsche SE expects to write down between €7 billion and €20 billion on its Volkswagen stake and €1 billion to €2 billion on its Porsche AG stake.
The company has withdrawn its profit forecast for 2024, now anticipating a substantial loss after previously projecting a net profit of €2.4 billion to €4.4 billion.
Volkswagen's delayed planning process, driven by internal disputes over cost-cutting and investment priorities, has created uncertainty for Porsche SE's valuations.
Porsche SE will rely on external analyst projections for valuations due to the absence of updated internal data from Volkswagen.
Despite the anticipated losses, Porsche SE plans to distribute a dividend, as the write-downs are not expected to impact its cash flow.