€248.4m slide fails to halt forecast upgrades

German tourist giant TUI reports larger Q2 losses

GMT 12:30 2013 Wednesday ,15 May

Arab Today, arab today German tourist giant TUI reports larger Q2 losses

TUI pencils in ‘improvements’
Frankfurt – Arabstoday

TUI pencils in ‘improvements’ Frankfurt – Arabstoday German travel and tourism giant TUI said Wednesday that its net loss widened in the second quarter, but it was nevertheless upgrading its full-year forecasts. TUI, which operates its business year from October to September, said in a statement it booked net loss of €248.4m ($320m) in the period from January to March, compared with a loss of €185.2m a year earlier.
At an operating or underlying level, the group's second-quarter loss narrowed slightly to €303.4m from €309.5m a year earlier, while revenues increased by 1.9 percent to €3.344bn.
TUI attributed the wider bottom-line loss to one-off effects, including writedowns on a hotel project in Italy, provisions connected with the expansion of its fleet of cruise ships at its unit Hapag-Lloyd Kreuzfahrten, and restructuring expenses.
On the basis of such a "sound operating performance...the outlook for the full-year operating result has been lifted," said chief executive Horst Baier.
TUI's management board was now pencilling in an "improvement" in underlying earnings for the whole year, he said.
And while net one-off expenses "will exceed our original guidance" overall profits "will remain positive for the full year, but will be considerably impacted by one-off effects," Baier said.

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