German TUI posts a loss but is helped by logistics unit
The German tourism and shipping group TUI posted on Wednesday quarterly results that finally got support from container activities thanks to the pick-up in global trade.
TUI nonetheless posted a net loss for the third quarter of its fiscal year of 36.3 million euros (47.4 million dollars), owing in large part to weak leisure earnings that are typical for the period from April to end June.
But even that was much better than in the same period a year earlier, when TUI's net loss amounted to 456.8 million euros following a financial operation to support its shipping unit Hapag Lloyd, a statement said.
The logistics unit, which TUI has sought several times to sell, turned in a core operating profit this time around of 226 million euros, compared with a loss of 193 million.
They were the best earnings before interest, tax and amortization (Ebita) on record for the division, and came on a 29 percent increase in sales to 1.6 billion euros.
On TUI's tourism side the picture was not idyllic meanwhile.
TUI Travel is listed in London and announced poor results on Tuesday owing in particular to the Icelandic volcano eruption.
Hotel activities saw sales slip by 4.0 percent on the year to 200 million euros, though core earnings gained 6.0 million euros to 18 million thanks to cost savings and positive foreign exchange effects.
On TUI's cruise side, sales lost 29 percent to 32 million euros because of maintenance work being done on the group's largest ship.
But adjusted core earnings still rose from the red to post a modest profit of 2.0 million euros, against a loss of 4.0 million in the same period a year earlier.
© 2010 AFP