PORSCHE SE, the controlling shareholder in Volkswagen AG, plans 472 million euros (US$602 million) in payments to stockholders following gains on that investment and said sales of sports cars may fall.

The special dividend on common and preferred stock will be raised by 33 percent to 2 euros a share from 1.50 euros a year earlier, while regular dividends will remain unchanged, Stuttgart, Germany-based Porsche said last Friday in a statement, Bloomberg News reported.

Deliveries in the current fiscal year will probably decline as 'the automotive industry is due to suffer a serious setback.'

Profit in the 12 months through July rose 51 percent because of Porsche's holding in Volkswagen, Europe's biggest car maker.

Volkswagen stock jumped fourfold in two days at the end of last month after Porsche, the maker of the 911 sports car, said on October 26 that it holds common stock and options for a 74-percent stake, prompting short-sellers to buy from a dwindling number of freely traded shares in an effort to close their positions.

'Gains from equity hedging clearly drove Porsche's profit,' said Daniel Schwarz, an analyst at Commerzbank AG. 'Their return on the Volkswagen stake is exorbitant.'

Full-year net income increased to 6.39 billion euros, or 35.95 euros a preferred share, from 4.24 billion euros, or 23.99 euros, a year earlier, Porsche said. The car maker said on October 1 that revenue rose 1.3 percent to 7.46 billion euros as demand for a new version of the Cayenne sport-utility vehicle offset a decline in 911 deliveries as customers awaited a retooled model.

The regular dividend on earnings will remain at 69 cents a common share and 70 cents a preferred share.