By Mauro Orru


Porsche Automobil Holding SE withdrew its profit forecast for the year and said it could expect a significantly negative result due to impairments related to Volkswagen and sports-car-maker Porsche AG.

Porsche SE said Friday that Volkswagen had informed it that Volkswagen's and Porsche AG's current planning isn't expected to be done by Dec. 31 and Porsche SE can't rely on the results of their current approved plan for accounting purposes. Porsche SE is the major shareholder in Volkswagen.

Due to the delay, Porsche SE's management board currently assumes the carrying amounts of the company's investments in Volkswagen and Porsche AG are likely to result in impairment losses for the year, with a significantly negative effect on after-tax profit.

Porsche SE previously had expected after-tax profit of between 2.4 billion euros and 4.4 billion euros ($2.51 billion to $4.61 billion) for the year.

The company also cited "the market environment with further increasing uncertainties, lower demand than originally expected on various markets and increasing geopolitical tensions and protectionist tendencies" as factors leading to the estimates of the investments' carrying amounts.

Porsche SE confirmed its forecast for the net debt as of the end of the year between 5 billion euros and 5.5 billion euros.


Write to Mauro Orru at mauro.orru@wsj.com


(END) Dow Jones Newswires

12-13-24 1419ET