Today, 26 April, was an intense day of quarterly reports, with some of the world's most important giants announcing their "state of health" in the first three months of 2018.
Eyes focused above all on Germany, where they have arrived in a narrow circle the accounts of Lufthansa and Volkswagen, but also those of Deutsche Bank which has announced in parallel a major overhaul of the investment banking business and staff cuts.
Speaking of the German airline, Lufhansa has managed to reduce the losses accumulated after the acquisition of Air Berlin, confirming the objectives for the end of the year. However, the containment does not seem to have been enough and on the Frankfurt Stock Exchange the share yields around 7%.
In detail, Lufthansa has announced a loss of 57 million euros against the 68 million of last year. The result remains far above the consensus: analysts were forecasting a loss of 29 million euros. “We clearly remain on our trajectory and show a good result in the first quarter,” says Group CFO Ulrik Svensson. “The exceptional costs related to the growth of Eurowings after the bankruptcy of Air Berlin have largely erased the increase in revenues,” the group explained in a statement.
Despite a “new record for passenger numbers” and an improvement in cargo, even i revenues they recorded a slight decrease (-0,7%, to 7,64 million euro) due to the application for the first time of the new IFRS accounting standards. In comparable figures, turnover increased by 4,5%. L'adjusted ebit rose 4% to 26 million. For 2018 Lufthansa expects a result "slightly below" the 2017, in which the net profit had reached the record value of 2,36 billion euros.
Remaining on Lufthansa, important arrivals today news on Alitalia for which the Council of Ministers approved a decree extending the sales times to 15 October and the terms for the repayment of the bridging loan (in the sights of Brussels). The CFO of the German airline also intervened on the matter, stating that, due to the conditions in which the Italian carrier finds itself today, "we don't care at all“. The company "must be restructured in terms of size, costs, destinations and so on, and this restructuring must be done by Italy, we cannot do it as shareholders". Lufthansa adds that as an alternative to Alitalia it will aim to grow in Air Dolomiti.
Investors react better to Volkswagen quarterly which in Frankfurt currently earns 3,4%. An increase that comes despite the decline in theNet income recorded in the first three months of 2018: -2,9% to 3,22 billion euros. In parallel, however, the sales they rose by 3,6% to 58,228 billion. "The drop in operating income is due in particular to a negative effect" relating to the IFRS 9 accounting rules, the group explained in a statement. The German group confirms the 2018 outlook.
I revenues of the Wolfsburg house stood at 58,2 billion euros against estimates included in a range between 56,44 and 59,50 billion, according to what Bloomberg writes. Pre-tax profit amounted to €4,48 billion while operating profit was €4,21 billion.
Volkswagen confirms targets for this year. “The group is in a solid economic position,” said new chief executive Herbert Diess.
