* Automotive net liquidity 12.3 bln eur at end-June
* Automotive net cash flow 4.3 bln eur in H1
* Q2 oper profit falls 56 pct to 928 million eur
* Volkswagen ordinaries up 3.9 pct, preferreds down 3.2 pct
(Adds details, background)
FRANKFURT, July 30 Volkswagen's (VOWG.DE) cash
pile continued to grow since December and second-quarter
operating profit easily beat expectations, Europe's largest
carmaker said on Thursday.
"Retaining our ability to act financially has the highest
priority," Chief Financial Officer Hans Dieter Poetsch said in a
Automotive net cash stood at 12.3 billion euros ($17.34
billion) by the end of June, growing by just over half since the
end of last year thanks to 4.3 billion euros in free cash flow
during the first half.
This leaves Volkswagen with a warchest easily capable of
buying sports car maker Porsche AG (PSHG_p.DE).
Last week, Porsche's two top executives left the company,
removing the last big hurdle to a deal that would see Qatar
become VW's third largest shareholder with an estimated 17
percent while eventually bringing the iconic maker of 911
Carreras into the VW group as its tenth brand.
As part of a deal, financial sources have said VW is
considering seeking approval from shareholders to issue new
non-voting preferred stock (VOWG_p.DE) to help raise enough
money that a purchase of Porsche would not threaten VW's 'A-'
Operating profit sank 56 percent to 928 million euros, but
still exceeded the average estimate of 628 million euros from a
Reuters poll of 15 analysts.
(Reporting by Christiaan Hetzner)