POAHY Porsche Automobile Holding SE (PK)

By Natascha Divac

FRANKFURT--Volkswagen AG's main shareholder Porsche SE Tuesday said its nine-months profit fell significantly, hit by high expenses in connection with Volkswagen's emissions scandal.

Porsche SE's net profit fell to 1.19 billion euros in the period ending September 30 from EUR2.5 billion in the same period a year earlier.

The financial holding, which currently owns 30.8% in Volkswagen, confirmed its 2015 profit outlook, which was lowered on October 28 to take account of the costs related to Volkswagen's emissions issue. Porsche SE currently sees full-year net profit of between 800 million euros and 1.8 billion euros. It previously saw net profit of between 2.8 billion euros and 3.8 billion euros.

Porsche SE cautioned last week that the new outlook is also subject to any further findings related to Volkswagen's emissions-rigging scandal, which last week moved beyond initial findings.

Europe's largest auto maker said last week it understated the level of carbon-dioxide emissions and fuel use in some cars to regulators, and its planned recall could involve about 800,000 more cars. Some of the cars were gasoline-powered, Volkswagen said, moving the violations beyond the company's diesel fleet for the first time. The emissions-cheating scandal emerged in mid-September and initially affected 11 million vehicles world-wide and nearly 500,000 in the U.S.

Volkswagen estimated the financial risk from its new disclosure at 2 billion euros, or $2.19 billion. Previously, it recorded a charge to earnings of 6.7 billion euros to pay the costs of fixing diesel cars affected by software that could lower emissions during testing.

"Due to these constraints, Porsche SE's forecast is inevitably subject to estimation risks," Porsche SE said last week, after Volkswagen's fresh revelations.

Write to Natascha Divac at natascha.divac@wsj.com

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(END) Dow Jones Newswires

November 10, 2015 06:04 ET (11:04 GMT)

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