VOW3 Volkswagen AG

By Jessica Sier

Porsche SE said Tuesday that its forecasts for 2020 are highly uncertain because its earnings are influenced by car maker Volkswagen AG, which will be affected by the coronavirus pandemic this year.

Porsche SE, which holds about 53% of Volkswagen's voting rights, said it previously expected a group result after tax of between 3.5 billion euros and EUR4.5 billion ($3.76 billion to $4.83 billion) for 2020.

As previously reported, Porsche SE's after-tax profit for 2019 rose to EUR4.4 billion up 26% from the year prior.

In its annual report, Porsche SE said it expects global demand for passenger cars to largely mirror 2019, with a dip in demand for light commercial vehicles. Mid-sized and heavy vehicles are likely to experience a distinct drop in demand, while buses will see a slight increase, the company said.

Because of Porsche SE's dependence on Volkswagen, this year "will be shaped in particular by uncertainties resulting from the globally rapidly progressing spread of the coronavirus pandemic...and the combined turmoil on the capital markets and real economy," it said.

Write to Jessica Sier at jessica.sier@wsj.com

(END) Dow Jones Newswires

March 24, 2020 06:17 ET (10:17 GMT)

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