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German sportscar manufacturer Porsche aims to perform better in 2025 after a billion-euro loss in the previous year, the Volkswagen-owned company said on Wednesday.
In line with its preliminary results, Porsche’s net loss amounted to €20 billion ($ 21.6 billion) in 2024 due to challenges at its automotive investments VW and Porsche AG.
For 2025, the management is targeting an adjusted after-tax profit between €2.4 billion and €4.4 billion. Analysts had initially expected a figure in the upper half of this range.
Chief executive Hans Dieter Pötsch said there was potential for value enhancement through cost-cutting and restructuring programmes at Volkswagen and Porsche.
The Stuttgart-based company holds the majority of voting rights in the Volkswagen group and a blocking minority in the sports car manufacturer Porsche AG, which is largely part of the Volkswagen group structure.
Porsche had to make significant write-downs on the book values of its two main investments last year, as the business performed worse than previously anticipated amid industry challenges.
Despite the loss in 2024, Porsche plans to pay a dividend of €1.91 per preferred share, down from €2.56 in the previous year.
Net debt is expected to be between €4.9 billion and €5.4 billion in 2025, after it had decreased to €5.2 billion by the end of 2024.
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