Following its failed takeover of Volkswagen , Porsche has posted a $6.5 billion pre-tax loss for the fiscal year ended July 31st. Porsche attempted to take over the much larger Volkswagen earlier this year, but failed to complete the acquisition as credit markets dried up.
Porsche warned stakeholders losses could reach $7.4 billion as the company recovered from massive losses related to the failed Volkswagen takeover. As a result of the failed acquisition, Porsche fired CEO Wendelin Wiedeking and CFO Holger Härter.
One year ago Porsche posted a pre-tax profit of $12.8 billion.
Despite the pre-tax loss, Porsche claims it posted double-digit margins in operating profit, although the German automaker failed to release specific figures. “Porsche remains the most profitable automobile manufacturer in the world,†the company said in a statement.
According to The Financial Times Deutschland, lenders have agreed to loan Porsche $12.65 billion now that it is a subsidy of Volkswagen .
