Alexa
  • Directory of Taiwan

Air Berlin drops 2007 outlook, shares fall nearly 5.5 percent

Air Berlin drops 2007 outlook, shares fall nearly 5.5 percent

Air Berlin PLC on Wednesday withdrew its sales and net profit forecasts for 2007, citing what it called "negative" factors in its bid to acquire rival LTU along with a 60 percent drop in second-quarter earnings.
Shares of the airline fell nearly 5.5 percent to euro11.03 (US$15.07) in Frankfurt following the announcement.
Air Berlin said a delay by German regulators in approving its euro140 million (US$191.3 million) purchase of LTU, announced in March, resulted in "tangible burdens, which have rendered obsolete the original plans for the 2007 financial year regarding the development of revenue and earnings."
The Federal Cartel Authority granted approval for the deal in July.
Airline spokeswoman Claudia Loeffler said the company did not have revised figures for the 2007 outlook.
Berlin-based Air Berlin issued the warning as it reported that second-quarter net profit dropped to euro12.1 million (US$16.5 million) in the April-June period, from euro30.1 million a year earlier.
The company said in a statement that "the sluggishness experienced by the aviation industry in the second quarter of 2007 did not leave Air Berlin unscathed."
Sales, however, rose 5 percent to euro510.5 million (US$697.6 million) from euro487 million in the 2006 quarter.
Despite the withdrawal, Air Berlin said it still anticipates pretax profit to exceed the euro64 million (US$87.45 million) it earned in 2006. The company's second-quarter pretax earnings were euro23.5 million (US$32.1 million), down from euro44.7 million a year earlier.
___
On the Net:
http://www.airberlin.com


Updated : 2021-06-25 21:01 GMT+08:00