News Column

LGT-Lufthansa: Unexpected profit warning

June 16, 2014



ENP Newswire - 16 June 2014

Release date- 12062014 - Lufthansa (Attractive*) has massively decreased its earnings targets.

Operating profit in 2014 will come in at only around EUR 1bn (previously EUR 1.3-1.5bn) and 2015 full-year profit is expected at EUR 2bn instead of the airline's previous forecast of EUR 2.65bn.

Recently appointed CEO Carsten Spohr delivered various reasons for the profit warning:

1. targets, set by his predecessor were to ambitious, 2. competition from low-fare airlines, 3. freight traffic remains below expectations, 4. claims from Venezuela and the depreciation of the country's currency, and 5. higher kerosine prices. Lufthansa shares dropped as much as 14% in yesterday's trading. We believe, that the new targets are conservative and should be priced in by the market. Despite this unexpected profit warning, we confirm our rating at this time.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: ENP Newswire


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters