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Porsche plans acquisitions after profits rise 17%

Porsche Automobil Holding SE – acquisitions planned after profits rise 17%

Porsche Automobil Holding SE posted a 17 percent rise in second-quarter after-tax profits to €1.01 billion ($1.35 billion).

Porsche SE’s sole asset is its majority stake in VW, acquired in 2012 when it sold its Porsche carmaking division to VW to settle a prolonged takeover dispute.

VW’s after-tax group profit rose 14 percent in the second quarter to €3.25 billion.

Porsche SE said in a statement that it plans to spend the bulk of its cash pile, which eased to €2.54 billion from €2.61 billion last December, on acquisitions.

The Stuttgart-based company has previously said it wants to invest in small and mid-sized firms “along the automotive value chain,” with a possible focus on drivetrains and safety technology.

Controlled through voting shares by the Porsche and Piech families, Porsche SE reaffirmed its guidance that full-year after-tax profits will be between €2.2 billion and €2.7 billion euros, compared with €2.4 billion in 2013.

Porsche SE still faces investor lawsuits related to its unsuccessful 2008 attempt to take over the much larger VW. A €1.8 billion case brought by plaintiffs that include the U.S. fund Elliott Associates is scheduled to come before a German court next October.