Porsche makes a profit of 1.088 billion EuroHigher dividend for Porsche shareholders
Stuttgart. Dr. Ing. h.c. F. Porsche AG of Stuttgart, Germany, turned in the highest profit in its corporate history during the 2003/04 fiscal year, which closed on July 31, in spite of the difficult economic climate. At today’s meeting of the Supervisory Board, the Group’s pre-tax result of 1.088 billion Euros was confirmed. This figure exceeds the previous fiscal year’s result of 933 million Euros by 16.6 percent. It also proved possible to increase the Group’s surplus for the fiscal year (the after-tax result) by 8.3 percent to 612 million Euros, compared with 565 million Euros for the previous year.
In contrast to the Group, pre-tax results for Porsche AG went down, to 843 million Euros compared with 1.042 billion Euros in the previous fiscal year (minus 19.1 percent). A determining factor for this downturn was the decision for the Group’s subsidiary companies to transfer lower profits. In addition, the increase in Cayenne stocks within the Group, which was necessary in the course of the previous year’s launch, led to profits for Porsche AG that were not registered in the year under review. Porsche AG’s surplus for the year amounted to 488 million Euros, compared with 660 million Euros in the previous year (down by 26.1 percent).
The shareholders’ general meeting in Stuttgart on January 28, 2005 will be recommended to pay common-stock holders a dividend of 3.94 Euros per share for the 2003/04 fiscal year. Preferred-stock shareholders will receive a dividend of 4.00 Euros. The sum of 69.5 million Euros distributed as dividends will exceed the previous year’s total (59 million Euros) by 17.8 percent. For the 2002/03 fiscal year, dividends of 3.34 Euros per share of common stock and 3.40 Euros per share of preferred stock were paid. The shareholders’ general meeting will be asked to approve the allocation of the remaining sum of approximately 174.5 million Euros for 2003/04 to retained earnings.
Thanks to its successful new model, the Cayenne, Porsche was able to expand its business substantially in the 2003/04 fiscal year. Group sales rose by 15 percent to 76,827 vehicles and turnover by 13.9 percent to 6.36 billion Euros. Porsche’s outlook for the current 2004/05 fiscal year is again optimistic. The Cayenne has maintained its popularity. At the same time, the company is confident that the new-generation 911 and Boxster, which are being introduced to the market gradually from this summer to the end of the year, will lend additional impetus to Porsche’s sports car business. Above all, thanks to an even more attractive product program, the company expects renewed growth in the current fiscal year.