Porsche AG (ETR:P911) reported a €20 billion after-tax loss due to a writedown on its Volskagen stake.
As a result, the holding company proposed a lower dividend of €1.91 per preference share, down from €2.56 last year, reflecting reduced income from Volkswagen, which saw a 15% decline in operating profits.
Porsche, VW's largest shareholder, said it plans to broaden its investment portfolio and has the financial capacity to pursue larger opportunities.
Recent speculation about the Porsche and Piech families selling VW shares was denied, with Porsche stating no such plans exist.
The firm highlighted ongoing cost-cutting efforts at both VW and Porsche as having strong potential but stressed the need for strict execution.
In early trading, the shares were flat at €37.66.