UPDATE: TUI AG Expects Good FY11, But No Dividend For FY10
14 Dezember 2010 - 8:56AM
Dow Jones News
TUI AG (TUI1.XE), a holding company with assets in tourism and
shipping, Tuesday said it expects to report a positive group result
for its fiscal year 2011 on strong earnings from its unit TUI
Travel PLC (TT.LN) and continued cost control, but said it won't
pay a dividend for fiscal 2010.
When and to what extent the MDAX-listed company will restart
dividend payments depends on the further development of the
company, it added.
Chief Executive Michael Frenzel said in a statement the company
is well positioned for the coming financial year.
The Hanover, Germany-based company said the winter season is
coming along well with an increase in bookings on the year in
Europe, and substantial growth in some markets.
Europe's biggest travel company, U.K.-based TUI Travel,
majority-owned by TUI AG, is expected to show a slight increase in
earnings before interest, taxes and amortization, or Ebita,
excluding gains on disposals and restructuring expenses in fiscal
2011. Adjusted Ebita for continuing operations, which includes the
tourism business and central operations, is expected to rise on the
year.
TUI aims to further cut its net debt level, which reduced to
EUR2.29 billion in fiscal 2010 from EUR2.33 billion a year
earlier.
Net profit for fiscal 2010, which runs from October to
September, fell 40% to EUR101.8 million, after the previous year
was boosted by the disposal of a majority stake in its container
shipping unit Hapag-Lloyd. This year's figure clearly beat the
EUR80 million expected, according to a Dow Jones Newswires poll of
nine analysts.
Sales contracted 1.5% to EUR16.35 billion, above analysts'
forecast of EUR15.9 billion. However, sales at TUI Travel, which
accounts for the bulk of TUI's earnings, fell to EUR15.7 billion
from EUR15.9 billion a year before.
TUI aims to fully divest its stake in Hapag-Lloyd. After a
planned capital increase, TUI will hold 49.8% in the company and
the Albert Ballin GmbH & Co. KG consortium will hold the
remaining 50.2%.
TUI AG changed its fiscal year to bring it in line with that of
TUI Travel and, after a short financial year for 2009, the
company's financial year now runs from October to September.
-By Hilde Messer, Dow Jones Newswires; +49 69 29725 506;
hilde.messer@dowjones.com
(Kirsten Bienk in Hamburg contributed to this article.)
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