Just a quick post regarding Porsche CEO, Wiedeking’s amazing feat that allowed Porsche to post a profit of $11.6bn vs total revenues of $10.2bn. How did he achieve this? Well, only 12% came from making cars, the rest came by way of a sophisticated stock deal that may cause Porsche to take-over its parent Volkswagen.
Here is a snippet from the CNN Money article:
Schmidt is referring to a feat that guarantees Wiedeking a place in the record books: Porsche’s profits before taxes of $11.6 billion in the fiscal year ended in July were actually larger than its total revenues from sales of $10.2 billion. Not even Google has profits exceeding 100%. Only 12% of Porsche’s profits came from making cars. The remainder is the fruit of a brilliantly sophisticated stock-hedging strategy (yes, sometimes they do work) that was hatched by CFO Holgar Hrter before Porsche started buying into VW, and ended up panicking short-sellers and enriching the automaker.
Do you know of any other company that has achieved this feat?
