Porsche the Hedge Fund
FT reports that Porsche is acting more like a hedge fund than a luxury car manufacturer:
Porsche on Monday revealed it earned three times as much money from trading derivatives as it did from selling cars, prompting accusations it was acting more like a hedge fund. The German luxury sports carmaker said €3.6bn ($5.2bn) of its €5.86bn pre-tax profit in the year to July was from share options. Stripping out the €521m it made from revaluing its 31% controlling stake in Volkswagen and €702m from its share of VW’s profits, Porsche made at most just €1.05bn from its “core” carmaking business.
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Posted: November 14th, 2007 under Equities, Europe, General.
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