unmanned transport
11th Nov 2005, 19:07
Lufthansa raises full-year operating outlook; costs remain top priority.
Friday November 11, 2005
Lufthansa Group yesterday confirmed third-quarter net earnings of €416 million ($490 million) after a breakeven first half (ATWOnline, Nov. 10).
Results were boosted by pre-tax gains of €180 million from the sale of LH's remaining shareholding in Amadeus and €107 million from the sale of its interest in Loyalty Partner. It earned €125 million in the third quarter of 2004.
Operating profit for the 2005 quarter was flat at €218 million while nine-month operating profit rose 87.6% to €471 million from €251 million. The group said it is expecting an operating profit "significantly" above €400 million for the full year. Previously it said it expected an operating result of more than €400 million. Last year the annual operating profit was €383 million.
"Lufthansa is holding course, even in turbulent times. Despite soaring oil prices we have utilized our market potential and grown profitably," Chairman and CEO Wolfgang Mayrhuber said in a statement.
All of the group's business segments "developed well" over the nine months. Lufthansa Passenger Business had a nine-month operating profit of €269 million, up 13.5% from €237 million in 2004, on a 5.6% rise in revenue to €8.9 billion.
The Logistics Group encompassing Lufthansa Cargo had an operating profit of €45 million, up from €5 million last year, on a 9.5% rise in revenue to €2 billion. Lufthansa Technik's operating result climbed 8.9% to €172 million on a 2.4% hike in sales to €2.3 billion. The share of revenue from external customers rose 2.5 points to 57.2%. LSG Sky Chefs Group experienced a 9.7% fall in sales to €1.6 billion but managed an operating profit of €4 million compared with a loss of €114 million in 2004. Thomas Cook AG had negative EBITDA of €37 million, narrowed from €121 million in 2004, and Mayrhuber said the unit will end the year in profit "for the first time in four years."
Despite the strong results, he emphasized that cost-cutting is still the No. 1 priority. "Our Action Plan aimed at reducing costs and raising efficiency will be implemented. We are set on improving results by €1.2 billion by year end 2006 and will realize that target," he stated. Lufthansa has saved €708 million of the €780 million targeted for 2005, he added.
Friday November 11, 2005
Lufthansa Group yesterday confirmed third-quarter net earnings of €416 million ($490 million) after a breakeven first half (ATWOnline, Nov. 10).
Results were boosted by pre-tax gains of €180 million from the sale of LH's remaining shareholding in Amadeus and €107 million from the sale of its interest in Loyalty Partner. It earned €125 million in the third quarter of 2004.
Operating profit for the 2005 quarter was flat at €218 million while nine-month operating profit rose 87.6% to €471 million from €251 million. The group said it is expecting an operating profit "significantly" above €400 million for the full year. Previously it said it expected an operating result of more than €400 million. Last year the annual operating profit was €383 million.
"Lufthansa is holding course, even in turbulent times. Despite soaring oil prices we have utilized our market potential and grown profitably," Chairman and CEO Wolfgang Mayrhuber said in a statement.
All of the group's business segments "developed well" over the nine months. Lufthansa Passenger Business had a nine-month operating profit of €269 million, up 13.5% from €237 million in 2004, on a 5.6% rise in revenue to €8.9 billion.
The Logistics Group encompassing Lufthansa Cargo had an operating profit of €45 million, up from €5 million last year, on a 9.5% rise in revenue to €2 billion. Lufthansa Technik's operating result climbed 8.9% to €172 million on a 2.4% hike in sales to €2.3 billion. The share of revenue from external customers rose 2.5 points to 57.2%. LSG Sky Chefs Group experienced a 9.7% fall in sales to €1.6 billion but managed an operating profit of €4 million compared with a loss of €114 million in 2004. Thomas Cook AG had negative EBITDA of €37 million, narrowed from €121 million in 2004, and Mayrhuber said the unit will end the year in profit "for the first time in four years."
Despite the strong results, he emphasized that cost-cutting is still the No. 1 priority. "Our Action Plan aimed at reducing costs and raising efficiency will be implemented. We are set on improving results by €1.2 billion by year end 2006 and will realize that target," he stated. Lufthansa has saved €708 million of the €780 million targeted for 2005, he added.
