Porsche Loses $6.6 Billion

Automaker said Thursday it had a pretax loss of $6.6 billion in the past financial year, a result that was dragged down by stock options in Volkswagen AG.

Nov 12th, 2009

BERLIN (AP) -- Porsche Automobil Holding SE said Thursday that it had a pretax loss of euro4.4 billion ($6.6 billion) in the past financial year, a result dragged down by costs related to its attempted takeover of Volkswagen AG.

The loss for the year that ended July 31 compared with a pre-tax profit the previous year of euro8.6 billion and was driven by writedowns for options on Volkswagen shares, the company said.

Porsche's full annual report is due on Nov. 25.

The Stuttgart-based company had warned in July that it anticipated a pretax loss of up to euro5 billion for the 2008-2009 fiscal year.

Porsche accumulated heavy debt in a failed attempt to take over the larger Volkswagen.

Former chief executive Wendelin Wiedeking and chief financial officer Holger Haerter, who had championed the takeover drive, stepped down in July.

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