Oliver Blume, CEO of Porsche AG, defends the course of the Stuttgart sports car farmer after the company’s relegation from the company from the German leading index Dax and strives to return soon. “The DAX becomes poorer for one of the most valuable German companies. If we look at the overall market capitalization and the radiance of the Porsche brand, we are still among the large listed companies in Germany,” said Blume in an interview with the Frankfurter Allgemeine Zeitung. The German stock exchange had announced on Wednesday evening as well as the laboratory decorator Sartorius the circle of 40 most important companies in Must leave September. Porsche had moved straight into the DAX after his IPO three years ago. Since then, however, the share price has dropped significantly. Flower power in the F.A.Z. Technical factors for relegation into the M-DAX of the mean values are particularly responsible. “The German stock exchange takes into account the freely tradable free float when composition of the DAX – and this is comparatively low at Porsche AG with a good twelve percent.” In the DAX you fairly fair with companies that have a lower market capitalization, but a significantly higher free float, because of these technical factors, it was not enough in this round. “But I am sure that investors will continue to recognize the value of our share. With our iconic products and the result programs, we will also see higher pag courses in the future. With the new direction of Porsche, we have the clear ambition to return to the DAX as soon as possible,” said Blume a few days before the IAA car show in Munich. Porsche is currently fighting with many most important markets in the United States and China with many difficulty porsche. Blume defended the strategy of current leadership to master it: “The substance is very healthy, the potential of Porsche continues to exist. We have a consistent strategy, clear priorities, and we think in the long term. That is the basis for future success. In the value of the company Porsche, we continue to play in the first division.” In conversation with the F.A.Z. If the manager once again defended his double role as CEO of the Volkswagen Group and the subsidiary Porsche, which was sharply criticized by shareholder representatives as well as the overall representative of the Volkswagen works council: “The double role in the Volkswagen Group and at Porsche AG brings many advantages from the start. It was consciously so that I have a hundred percent-we have achieved a lot in a short time. Joy and passion. And at the same time it is no secret that this double role is not designed in the long run. Blume had indicated his farewell to the Porsche tip in the past. However, he did not want to name a specific period. On Wednesday evening, the German stock exchange was announced in the course of its regular examination of the DAX composition that the sports car manufacturer descended into the index for medium-sized companies (M-DAX). The pharmaceutical and laboratory supplier Sartorius also has to switch to the M-DAX, as the German stock exchange subsidiary ISS Stoxx announced in Zug. The real estate platform operator Scout24 and the plant manufacturer GEA will be climbed into the DAX. The changes come into force on September 22nd. Porsche AG went to the stock exchange at the end of September 2022 and celebrated one of the greatest IPOs in German economic history as a promising newcomer. Just a few months later, the still highly profitable company rose into the DAX at the time. The shares started with an issue price of 82.50 euros during the IPO and increased to almost 120 euros in the months after. Most recently, the share price was only around 45 euros. For the crisis of the German Auto Industrieknapp three years later, the mood with the VW subsidiary has deteriorated significantly. The profitability of the former return pearl has melted. The problems of the German auto industry do not stop at Porsche-be it the weakening Chinese market, problems with e-car sales or the customs dispute with the USA. The company recently recorded severe burglaries. That is why saving is now the order of the day at the Swabians. The descent from Porsche is symbolic of the crisis of the German auto industry, which fights with falling profits. This burdens the company’s share prices. The weight of the car industry in the DAX has shrunk significantly within ten years, and the Porsche Automobil Holding SE remains in the DAX than Porsche AG. With 31.9 percent, the investment company is the largest shareholder of the car manufacturer VW; It is also involved in Porsche AG with about one eighth. More on the subject of other Dax relegations Sartorius, in Corona pandemic, a strong demand for his products, for example, benefited for the production of vaccines. After that, the company suffered from the warding of the boom, high stocks for customers and a market weakness in China. Sartorius shares have roughly halved within three years, climbing into the DAX the real estate platform operator Scout24 and the plant manufacturer GEA. The changes will come into force on September 22nd. Changes in the DAX are not unusual. The German stock exchange checks the composition of the German leading index and other indices, including the mean value index M-DAX, quarterly. For the ascent and descent of companies, the stock market value of the freely traded stocks is crucial. To which index- Dax or M-DAX- a company has no consequences for its business. However, a listing in the first German stock market league brings prestige and more visibility among international investors. Because the DAX is the figurehead of the German economy. Long -term consequences for the share price generally do not have index changes. They are particularly important for index funds (ETF), which, for example, map the DAX directly and one to one. You then have to switch off and convert accordingly what influence the share prices. A descent from the DAX is not a one -way street, as the example of Commerzbank shows: In 2018 it had to leave the DAX, in 2023 the return to the leading index, which had meanwhile been expanded from 30 to 40 values. The Lufthansa, which had to leave the Dax in the MDAX in the summer of 2020, was always considered a candidate for a return.
Go to source