Flughafen Wien AG

Earnings Release • Apr 4, 2002

News Details

Corporate | 4 April 2002 09:59

Flughafen Wien AG english

Annual Results 2001 Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Flughafen Wien Group Good results in 2001 in spite of a difficult business environment Flughafen Wien AG starts marketing offensive and cost reduction programme Flughafen Wien AG ended 2001 with respectable results in view of the highly unfavourable operating environment for the international aviation industry. After three record years in succession, turnover declined by 2.2% to EUR 320.1 million and earnings before interest and tax (EBIT) decreased by 8.5% to EUR 85.2 million. Earnings before tax (EBT) fell by 5.5% to EUR 96.9 million and net profit by 9.3% to EUR 66.3 million. The primary reason for this development was slower traffic development as a consequence of general economic weakness, which was intensified by the events of 11 September and subsequent financial difficulties encountered by many airlines. Positive results were achieved from a number of measures implemented in previous years to lower personnel expenses, such as the one-time settlement payments for current pensions. In order to create momentum for traffic growth, Flughafen Wien AG started a marketing campaign in 2002. The expansion of strategically important business areas – Eastern Europe and long-haul flights – will now receive special emphasis. At the same time, the Management Board of Flughafen Wien AG introduced measures to reduce personnel expenses over the long-term. A company agreement was concluded at the beginning of 2002, which will also allow the settlement of pension obligations to current employees through one- time payments. This will have a positive effect of approximately EUR 19 million before taxes in the first quarter of 2002. Those employees affected by this programme will receive their pensions from a pension fund in the future. The 2001 balance sheet as of 31 December 2001 includes a provision of EUR 8.8 million for measures designed to reduce personnel. 2000 2001 Change in EUR mill. in EUR mill. in % Turnover Group 327.4 320.1 -2.2 Airport 137.4 136.2 -0.9 Handling 117.9 111.0 -5.9 Non-Aviation 71.7 72.7 1.3 Operating income 334.4 328.7 -1.7 Operating expenses 241.3 243.5 0.9 EBIT Group 93.1 85.2 -8.5 Airport 68.3 66.1 -3.2 Handling 23.3 21.8 -6.8 Non-Aviation 26.8 31.2 16.5 EBT 102.6 96.9 -5.5 Profit for the year 73.1 66.3 -9.3 Cash flow from operating activities 100.9 98.3 -2.6 Passengers (in mill.) 11.9 11.9 -0.7 Transfer passengers (in mill.) 3.4 3.8 12.2 Flight movements 186,469 185,425 -0.6 Maximum take-off weight (in 1,000 tonnes) 5,345 5,113 -4.3 Cargo (in 1,000 tonnes) 180.7 159.5 -11.7 Outlook The impact of 11 September on the international aviation industry and consolidation steps by the Austrian Airlines Group lead management of Flughafen Wien AG to forecast a decline of 4% in passenger numbers, 3% in flight movements, and 5% for maximum take-off weight (MTOW) in 2002. An increase in the number of passengers is expected however, beginning in the third quarter of 2002. These temporary developments do not indicate any change in long-range forecasts for annual growth of 5 to 6% in the number of passengers using the airport. Even in recent difficult months, Vienna International Airport has been able to expand its standing as the key East-West hub. Double-digit growth underscores this position, as does the fact that Vienna offers the largest number of direct and secondary destinations to Eastern Europe. Long-term expansion plans remain flexible. Original forecasts called for investments of EUR 1,016 million by 2006, but are now 25% less at EUR 773 million (without land purchases) after modification, including approximately EUR 210 million for the expansion of the Skylink Terminal. Major projects in 2002 (investment: EUR 114 million) include the apron expansion postponed in 2001, completion of a cargo centre for TNT, plans for the VIE Skylink Terminal, bus gates, an office park, and drainage for Runway 16/34. The Management Board is undertaking all efforts to reduce costs to meet the given revenue situation and, in particular, to reduce personnel expenses. This is reflected in measures implemented to settle existing pension claims through one-time payments. The settlement of pension obligations to current employees will have a positive effect of approximately EUR 19 million on earnings before taxes in 2002. Restructuring measures will lead to further long-term relief for personnel expenses beginning in 2002. A provision of EUR 8.8 million was included in the 2001 balance sheet for this purpose. The Management Board of Flughafen Wien AG plans to use the three above-mentioned measures – a reduction in capital expenditure for expansion to reflect actual traffic development, the long-term reduction in personnel expenses, and the marketing offensive – to safeguard the successful development of earnings for the future. For additional information contact: Dagmar Lang (+43-1-)7007-22103 Hans Mayer (+43-1-)7007-23000 Robert Dusek (+43-1-)7007-23126 Stuart Leasor, Financial Dynamics (+44-20)72697173 end of message, (c)DGAP 04.04.2002