Investing.com -- Porsche SE (ETR: PSHG_p ) announced on Wednesday that it plans to broaden its investment portfolio and pursue greater diversification following a steep after-tax loss of 20 billion euros ($21.57 billion), driven by impairments on its stake in Volkswagen (ETR: VOWG_p ).
Porsche, the largest stakeholder in Volkswagen, proposed a reduced dividend of 1.91 euros per preference share, down from 2.56 euros a year earlier. The cut reflects Volkswagen’s weaker performance, with the automaker posting a 15% decline in operating profit for 2023.
"We are continuously screening promising investment opportunities, in both the portfolio segment as well as for potential new core investments," said Lutz Meschke, a member of Porsche SE’s board of management in charge of investment management and former CFO of Porsche AG. "We also have the financial capacity to make larger investments."
Controlled by the Porsche and Piech families, Porsche SE pointed to cost-cutting initiatives at both Volkswagen and Porsche as having meaningful potential to improve profitability. However, it emphasized that success would depend on “rigorous implementation.”
Earlier this month, German tabloid Bild reported that the Porsche and Piech families were weighing the sale of Volkswagen shares to unlock funds for new investments. At the time, Porsche SE said there were no specific plans in place.