Huge profits for German auto hedges

John Lawson, auto analyst at Citigroup Smith Barney in London, said advantageous hedges relative to spot rates could contribute up to 40% of operating profits at Germany’s top carmakers in 2003, based on a stable central euro rate of $1.15.

Lawson estimated that Porsche, which is currently hedged on a five-year horizon, would be the biggest beneficiary of its FX position, with a potential 41% of the firm’s earnings per share (EPS) being made up of FX profits. VW, meanwhile, which has the

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