German sports car maker Porsche (POAHF) is sticking to its 2016 outlook while warning of legal risks resulting from the Volkswagen (VLKAY) emissions scandal, including "subsequent effects" on VW's dividend policy.

Porsche is based in Stuttgart, Germany, and owns 52.2% of Volkswagen, which is 20% owned by the German state of Lower Saxony.

On Tuesday, Porsche said it still expects a group profit of between €1.4 billion ($1.59 billion) and €2.4 billion for fiscal 2016, based on the current group structure and VW's expectations regarding its future development and uncertainties surrounding the diesel issue.

Porsche shares were up 81 euro cents, or 1.65%, in Frankfurt Tuesday morning, while VW gained 1.84% to €139.23

Concerning VW specifically, Porsche said it's "well positioned" to deal with mixed developments in global car markets, boosted by a broad, selectively expanded product range, as well as a unique brand portfolio and wide selection of financial services, that gives it an edge over rivals.

At the same time, Porsche warned that legal risks related to the diesel issue may affect the parent company as well as VW itself.

"Ultimately, there could be subsequent effects on the dividend policy of Volkswagen AG and therefore on the cash inflows at the level of Porsche SE," it said.

Porsche posted a first-quarter profit of €661 million, down from €870 million a year earlier. It said the decline was mainly due to a drop in VW profit.