It must have been a hard day in the SAS (OMX: SAS) offices. In addition to the Cimber Sterling bankruptcy, which may also present the company with some opportunities down the line, affecting some SAS routes and customers, the airliner presented an interim report that painted a muddy picture. Revenue for Q1 2012 printed just below 9.6 billion, which is a 3% improvement on the heels of 53% increase on passenger numbers to 323 000.
This would be all good if not for growing losses during the already seasonally weak quarter. EBIT margin before nonrecurring items was down to -10.9% with the company being over a billion in the red before tax and nonrecurring items for the quarter. Sharp increases in jet-fuel prices and uncertain economic climate were given as reasons for this. The share responded with double-digit loss for the day.
The company is hastening the implementation of the 4Excellence program with measures amounting to 5 billion to be implemented within 2012-2013. On the bright side the operating cash flow was positive and the financial preparedness reflecting the financial condition that still allows some breathing room stood at 8.6 billion on March 31. The company finds 2012 were difficult to predict, with intense competition and high fuel prices adding the main challenges. Passenger numbers are expected to be up in mid-single digits but no profit forecast is given thus far.
No comments:
Post a Comment