Porsche withdraws guidance as it expects up to €20B impairment charge

Investing.com -- Porsche Automobil Holding SE (ETR:PSHG_p ) said on Friday that it was withdrawing its earnings forecast for the 2024 financial year, as it anticipated non-cash impairment losses on its investments in Volkswagen AG (OTC:VWAGY ) and Porsche AG.

The impairments, which are accounting-related, are estimated at €7–€20 billion for Volkswagen (ETR:VOWG_p ) and €1–€2 billion for Porsche AG.

But Porsche confirmed its net debt forecast of €5.0 billion to €5.5 billion as of year-end 2024. 

“The Board of Management expects that Porsche SE’s group result after tax for the 2024 financial year will be significantly negative,” company said in the statement

"The expected impairments at Porsche SE will not have a cash effect and will not affect the forecasts communicated by Volkswagen AG and Porsche AG for the 2024 financial year"

Porsche SE earlier had projected a group result after tax in the range of €2.4 billion to €4.4 billion for 2024.

Source: Investing.com