Fraport AG (FPRUF.PK,FRA.DE), the owner and operator of Germany's Frankfurt Airport or FRA, on Wednesday reported lower earnings for the second quarter, even as revenues were benefited by increased passenger traffic at FRA. Quarterly EBITDA, a key earnings performance metric, declined and were slightly below analysts' consensus. The company confirmed its outlook for 2012 while cautioning of difficult times for the air transportation industry.
On Frankfurt's Xetra, Fraport shares are currently trading at 45.22 euros, down 1.48 euros or 3.17 percent.
Second-quarter profit attributable to shareholders of 68.8 million euros was lower than 79.4 million euros last year. Earnings per €10 share dropped to 0.74 euros from 0.86 euros in the same quarter last year.
Earnings before interest, taxes, depreciation and amortization or EBITDA for the quarter was 227.4 million euros, slightly lower than prior year's 229.9 million euros.
Total revenue grew to 644.7 million euros from 634.6 million euros in the prior-year quarter and beat analysts' estimates.
For the first half, attributable profit fell to 84.4 million euros from last year's 104 million euros. The decline in earnings reflected higher depreciations and amortization and a decline in the financial result - mainly due to the inauguration of Frankfurt Airport's new Runway Northwest and the continuing high investments for the new Pier A-Plus at Terminal 1.
EBITDA increased 2 percent to 365.7 million euros. Fraport's revenue increased 2.5 percent to 1.154 billion euros. Both EBITDA and revenues matched analysts' estimates.
Business segment-wise, revenues from Aviation climbed mainly on current growth in passenger traffic and higher airport fees at Frankfurt Airport and revenues from security services.
In the first half, future-oriented capacity expansion of Fraport's home base airport resulted in a 3.4 percent increase in passengers at Frankfurt Airport to 27.4 million. This was despite strikes in February and March, which led to a cancellation of a total of 2,150 flights.
The results also reflected positive traffic development at Lima Airport.
In total, the company's fully and partially consolidated airports, Frankfurt, Antalya, Lima, Burgas, and Varna, served 44.2 million passenger in the first half, 2.8 percent higher than last year.
In contrast, Fraport's cargo volume was hurt by weakness in global economy and the European debt-crisis along with night-time flight curfew imposed in Frankfurt at the end of October 2011. Freight volumes in Frankfurt was down 9.9 percent.
Further, Fraport confirmed its outlook for 2012. Revenue is still expected to be more than 2.5 billion euros and EBITDA is expected to climb by at least five percent, while net profit is still projected to be at about previous year's level.
Fraport's executive board chairman Stefan Schulte earlier had stated that passenger growth at Frankfurt Airport is forecast to be less than four percent for 2012.
Schulte now said, "During this difficult period in the air transportation industry our figures have been developing as planned and we are sticking to our goals for 2012."
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by RTT Staff Writer
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