Porsche SE Faces Expected Impairment Losses on Key Investments

Porsche Automobil Holding SE (Porsche SE) has announced an expected non-cash impairment of its investments in Volkswagen AG and Porsche AG. This move is anticipated to lead to an accounting loss in Porsche SE's consolidated financial statements, prompting the company to withdraw its earnings forecast for 2024.

The impairment risk stems from the inability to rely on the current planning data of Volkswagen AG and Porsche AG, pushing Porsche SE to rely primarily on external analyst expectations for impairment tests. As a result, an estimated impairment loss ranging from 7 to 20 billion euros for Volkswagen AG and 1 to 2 billion euros for Porsche AG is anticipated.

This situation is attributed to a complex market environment including uncertainties, reduced demand, and geopolitical tensions. Despite the impairment, Porsche SE plans to distribute a dividend for 2024 and maintains its forecast for net debt between 5.0 and 5.5 billion euros by year-end.