TUI AG, the German owner of Europe’s largest travel company, said its shortened fiscal full-year profit surged after selling a majority stake in the Hapag-Lloyd shipping line.

Net income was 333.3 million euros ($488 million), or 1.25 euros a
share, in the year ended September, from 33.7 million euros, or 7
cents, in the same period a year earlier, the Hanover, Germany-based
company said today.

TUI had a gain of 1.1 billion euros on the sale of about 57 percent of
Hapag to a Hamburg-based group of investors. That helped offset a loss
at TUI Travel Plc, its main asset, which has cut flights in response to
lower tourism demand.

“The only reason for the positive result is the benefit from the
Hapag-Lloyd disposal,” Martina Noss, an analyst at Norddeutsche
Landesbank in Hanover, wrote in a note to investors before the figures
were reported. “The market environment for tourism and for shipping
will remain very difficult,” said Noss, who has a “hold” rating on the
stock.

Revenue fell 14 percent to 13.1 billion euros. Sales at Hapag, in which
TUI holds 43 percent, fell 29 percent to 3.3 billion euros.

“We expect operating earnings in our core business to post a stable
performance” in 2010, even if current economic circumstances persist,
Chief Executive Officer Michael Frenzel said in the statement. Profit
on that basis will rise “slightly” in 2010/2011, he added.

Operating profit rose 4.7 percent to 696 million euros in the company’s
tourism business, which includes a majority stake in TUI Travel, cruise
ships and hotels. TUI reported a shortened fiscal year to match the
reporting period of TUI Travel.

TUI Travel said this month that its full-year loss narrowed to 25
million pounds ($41 million) from 271 million pounds a year earlier
after it cut flights in the U.K. and Germany. TUI Travel, based in
Crawley, England, is Europe’s largest tour operator.

The operating loss in the period at Hapag, which is the world’s
fifth-largest container line, was 675 million euros after a profit of
212 million euros a year earlier.

Source: Bloomberg

Search to find what you want

• Hapag-Lloyd owner prepared to the lifeline

    The owners of Hapag-Lloyd are preparing to give the container shipping company further 420 million euros ($595.9 million), several people familiar with the situation told Reuters. “It is still undecided whether TUI will inject further cash or transform existing loans to Hapag into equity,” said a source close to TUI. The latter

• Created After FTD TUI says Hapag-Lloyd needs more money

    TUI AG, the biggest shareholder in shipping line Hapag-Lloyd AG, fell as much as 6.2 percent in German trading after Financial Times Deutschland said the vessel owner may need 1.95 billion euros ($2.76 billion) in capital. The shares declined to as low as 4.72 euros after the newspaper said Hapag’s owners may

• Hapag-Lloyd may EU300 million credit, Ahrons Says

     Hapag-Lloyd AG, Germany’s largest container-shipping line, will get an emergency credit of 300 million euros ($429 million) provided all its shareholders agree, a lawmaker said.  The cash injection will be part of a 1.75 billion-euro rescue package by lenders and shareholders including TUI AG to secure Hapag-Lloyd’s long-term viability, Barbara Ahrons, a

• Hapag-Lloyd announces rate hikes

        Hapag-Lloyd said it would implement rate hikes on Oct. 1 on several trades as follows:    • North Europe to Oceania (including South Pacific Islands) rates will increase 175 euros ($251) per 20-foot container and 350 euros ($501) per 40-foot container.    • Mediterranean to Oceania (including South Pacific Islands), $250

• Hapag-Lloyd Owner Type 1.86 billion euros in aid

    The owners of Hapag-Lloyd AG will give 1.86 billion euros ($2.7 billion) to the container-shipping company as part of a rescue package comprising cash injections, loans and credit guarantees. The financial help for Hapag comprises 923 million euros ($1.34 billion) pledged last month by the owners and additional help of about 940

• JPMorgan, ACS in the vicinity of Spanish ports deal-sources

    Spanish group ACS is close to selling the Spanish port business of its subsidiary Dragados SPL to a JPMorgan infrastructure fund, though concerns about the port sector are hampering the deal, sources familiar with the matter said on Thursday. Ports are seen as among the most vulnerable infrastructure assets in

• Hapag-Lloyd Kuehne Investor urges tie-up

     Klaus-Michael Kuehne, shareholder in Hapag-Lloyd, is pushing for a tie-up of the German container shipping company with peers in Europe or Asia to secure Hapag-Lloyd’s long-term survival.  Kuehne, one of the biggest shareholders in a consortium that bought a 57 percent stake in Hapag-Lloyd from German tourism group TUI AG earlier this

• TUI Falls as the FT reports Germany Hapag may not get state aid

    TUI AG, the biggest stakeholder in the Hapag-Lloyd shipping line, fell the most in two weeks in German trading after Financial Times Deutschland said Hapag’s bid for state aid may be derailed by the European Union. Hapag wants loan guarantees worth 1.2 billion euros ($1.76 billion) from Germany’s federal government, an

• Hapag-Lloyd to gain 923 million-euro cash injection

    German shipping line Hapag-Lloyd AG may receive a 923 million-euro ($1.32 billion) cash injection from owners including the city of Hamburg as the company seeks to bolster its chances of receiving a federal loan guarantee. The capital increase approved today by the city’s government is more than the 750 million euros

• Fredriksen pushes for seat on the Board of TUI Source –

    Norwegian shipping tycoon John Fredriksen is trying to claim the seat on TUI AG’s supervisory board that became vacant after the departure of Chairman Juergen Krumnow, a source close to Fredriksen said. The source told Reuters on Friday that Fredriksen had submitted a proposal to the district court of Hanover

• 1.5 million euros will be invested in Orsova shipyard

    Orsova Shipyard (south-west of Bucharest) will invest 1.5 million euros in 2010 for the rehabilitation and upgrading of the shipbuilding infrastructure, General Manager Constantin Badoiu said. According to him, the investment will allow the execution of 10 cradles positioned on the berth that hold the ships into vertical position in

• Constanta shipyard doubles turnover

    Santierul Naval Constanta (SNC – Constanta Shipyard), the second largest shipbuilder in Romania, controlled by businessman Gheorghe Bosanceanu, doubled its business in the first half of this year, to 290 million RON (68.7 million euros). The company’s net profit climbed by 63.6% in the same period, to 8.4 million RON (2 million

• Maersk to increase Europe-Africa Rates

     Danish carrier Maersk Line said it is raising rates from northern Europe and western Mediterranean to West Africa beginning Oct. 1. Rates from northern Europe and West Mediterranean to West Africa will increase 150 euros ($217) per TEU or 20-foot reefer, and 270 euros ($391) per FEU or 40-foot reefer. From the

• GDF Suez buys gas fields Australia game

    French energy giant GDF Suez has bought a 60-percent stake in Australian offshore gas fields held by Australian firm Santos for 200 million dollars (142 million euros), GDF Suez said on Tuesday. GDF Suez will also lead a joint venture with Santos to develop a floating plant to turn gas from

• ThyssenKrupp proposes expectations, but remains cautious

    German steel maker ThyssenKrupp on Friday reported a 2% drop in fiscal first-quarter profit, but still comfortably beat market expectations as demand improved from earlier in 2009 and as restructuring and cost cutting measures came to fruition.