On Friday, Porsche SE, the majority shareholder of Volkswagen (ETR: VOWG_p ), announced an anticipated loss after tax of approximately 20 billion euros ($21.7 billion) for the year 2024. This projection is based on impairments related to its investment in Volkswagen, which were first made public in December. These impairments are a direct reflection of significant declines in the market value of both Volkswagen and Porsche AG. Currently, Porsche SE holds a 31.9% stake in Volkswagen and a 12.5% stake in Porsche AG.

The financial forecast for Porsche SE was previously uncertain due to Volkswagen’s challenges, which included disputes with unions concerning plant closures and wages. These issues had a substantial impact on Volkswagen’s annual planning and led Porsche SE to withdraw its profit outlook at that time.

Porsche SE is set to publish its complete annual financial results on March 26. The impairments on its holdings in Volkswagen and Porsche AG have been calculated at 19.9 billion euros and 3.4 billion euros, respectively. These figures are at the high end of the ranges that Porsche SE had previously communicated and are non-cash effective.

The company also provided an update on its financial position, forecasting a net debt of 5.2 billion euros by the end of 2024. Despite the anticipated loss, Porsche SE confirmed its intention to distribute dividends for the past fiscal year, although specific details regarding the dividend were not disclosed.

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