Report: Porsche to post $1b operating profit
Porsche may have stumbled into some financial trouble over the last few months but the German automaker is reportedly poised to post a positive operating profit for the full fiscal year. Porsche fiscal year is set to end on July 31st.
According to Reuters, Porsche will sell about 80,000 vehicles in the fiscal year ending July 31st, giving the German automaker an operating profit of about $1 billion. That figure is far better than expected, especially considering Porsche's recently revealed financial woes.
"On an operating level Porsche does not have a problem -- unlike other producers," Claus Schmiedel, a German official, told Stuttgarter Nachrichten.
Although Porsche might not have an immediate operating problem, its financial books are far from perfect. Due to its push to acquire a majority stake in Volkswagen, Porsche has pushed its debt level to $12 billion. Moreover, Porsche teetered on the brink of bankruptcy for three days in March before being saved by a $978 million cash infusion from VW. Porsche is currently seeking a $140 million loan from the German government and reportedly needs another $3.5 billion just to keep its doors open.