Porsche said its fiscal 2010 net loss narrowed sharply and that it expects to return to profitability in 2011 as the sports-car maker's rebounding sales help offset charges stemming from its stake in Volkswagen.

The Stuttgart-based maker of the 911 and other sports cars reported a net loss in the year ended July 31 of €454m compared with a net loss of €3.6bn in the same period a year earlier.