Ad hoc press release / Flughafen Wien AG issues profit warning
Non-recurring effects and impairment charges of approx. 74 million have a negative effect on results for the first nine months of 2011; preliminary net profit for the period falls to approx. 20 million
Skylink: experts identify damages of approx. 57 million from deficient contract performance ? Flughafen Wien will actively pursue claims for compensation
Management Board cuts capital expenditure programme for the period up to 2015 by 70 million to 590 million
In connection with the preparation of the financial statements for the third quarter, the management board of the issuer has determined the following on November 18, 2011:
The impairment charges and non-recurring effects of approx. 74 million are attributable to the terminal extension Skylink, the investment in Koice Airport and an investment property at Vienna Airport; in addition, provisions must be recognised to cover part-time work for older employees. These non-recurring effects will have a negative effect on earnings in the third quarter of 2011, and preliminary net income for the first nine months of this year will fall to approx. 20 million. Despite these results the companys operating development is positive, with an increase of 7.5% in traffic during the first three quarters of 2011.
Skylink: Flughafen Wien is evaluating legal steps
In the cases reviewed by technical experts, damages of approx. 57 million were identified as the result of deficient performance by contractors and unjustified increases in cost. Impairment charges totalling 29 million were recognised. Flughafen Wien AG will actively pursue claims for compensation from the involved companies. One company has already repaid 7.6 million to Flughafen Wien AG, whereby the public prosecutors office has also launched an investigation in this case.
Impairment charge to Koice Airport
In the fourth quarter of 2006 Flughafen Wien acquired a stake in Koice Airport through a consortium, and FWAG now holds an indirect share of 66%. The carrying amount of the investment in Koice Airport, which is accounted for at equity, equals 47 million before the recognition of any impairment charges. This company was profitable in the past, but the latest medium term forecasts indicate that traffic growth will fall substantially below earlier expectations. Consequently, the carrying amount of the investment must be reduced through an impairment charge of 21 million.
Impairment charge to investment property and provisions for part-time work for older employees
Recent detailed examinations indicate that a building at Vienna Airport will not reach the expected occupancy level over the medium-term. The carrying amount of this investment will therefore be reduced through an impairment charge of 18 million as of 30 September 2011. Additionally, provisions of approx. 6 million must be recognised to cover part-time work for older employees.
Management Board cuts capital expenditure to strengthen earning power over the medium term
The Management Board is taking further steps to increase the companys earning power and is cutting capital expenditure by approx. 70 million to 590 million for the period up to 2015. In addition to the cancellation of individual projects and a reduction in the respective expenditures, the maximum cost for the Skylink will decline to 770 million. The reduction comprises cost savings as well as the release of risk provisions. These effects decrease medium term financing requirements and, in turn, will have a positive influence on the companys gearing.
Detailed results on the first nine months will be announced on 24 November 2011.
For additional information contact:
Corporate Communications Flughafen Wien AG Investor Relations:
Peter Kleemann (+43-1-) 7007-23000 Judit Helenyi (+43-1-)7007-23126
Clemens Schleinzer (+43-1-) 7007-22399 Mario Santi (+43-1-) 7007-22826