Volkswagen emissions scandal hits Porsche profits

Profits at Porsche, which owns a controlling stake in Volkswagen, have plunged in the wake of the emissions scandal at the VW car group.

Porsche's pre-tax profit more than halved to €1.19bn (£841m) for the nine months to 30 September.

Porsche warned last month that profits would be hit by the revelations, which affect 11 million VW group vehicles.

The company said it now expected to make a net profit of between €800m and €1.8bn this year.

That will be significantly lower than the €3.03bn profit Porsche posted for 2014.

Porsche owns 30.8% of VW's shares. Last month, VW reported its first quarterly loss for at least 15 years after setting aside €6.7bn to cover the scandal.

Porsche's results published on Tuesday included no new information about VW's investigation of the scandals.

The company, which is controlled by the Porsche and Piech families, said that future profit guidance could change depending on the outcome of the investigation.

"As the majority shareholder, Porsche SE is affected by developments at the level of the Volkswagen Group," it said.

Shares in Porsche rose rose 0.6% to €40.01 in Frankfurt, while VW shares fell 1% to €95.51.

The value of VW stock has halved in the past three months in the wake of the scandal.