Germany's TUI profits down 40 percent, beat forecasts

14th December 2010, Comments 0 comments

German group TUI, one of Europe's leading tourism operators, said Tuesday its annual net profit slumped 40.3 percent but they were still above analyst forecasts.

TUI said its net profit in its year to September plunged to 101.8 million euros (136.4 million dollars), with the year-earlier figures boosted by the sale of shares in its shipping container unit Hapag-Lloyd.

The result was better than analyst forecasts for a net profit of 80 million euros, according to Dow Jones Newswires.

On the operating level, TUI made a profit of 640 million euros in its tourism division, which is set to become its sole activity in the future.

That was an increase of 14 percent and came despite disruption caused by the eruption of the Icelandic volcano Eyjafjallajökull in April.

Hapag-Lloyd, of which TUI now owns less than half, got a boost from the pick up in global trade and contributed 150 million dollars to the group's net profit, compared with a loss of 174 million euros in the previous year.

© 2010 AFP

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