Thursday, October 31, 2013
ANA Sees FY13 Net Profit Tumbling 65% On Fuel Costs
TOKYO (Nikkei)--ANA Holdings Inc. (9202) said Wednesday it now expects net profit to drop 65% to 15 billion yen this fiscal year, hurt in part by higher fuel costs stemming from the yen's depreciation.
The airline firm had been forecasting a 4% rise in profit to 45 billion yen.
The company, which owns All Nippon Airways Co., plans to reduce its annual dividend to 3 yen, down 1 yen from a year earlier, marking the first cut in four years.
Revenue is expected to rise 6% to 1.58 trillion yen, falling short of a prior projection by 30 billion yen. Operating profit is now forecast to plunge 42% to 60 billion yen, missing an earlier projection of an all-time high by 50 billion yen.
Half of this shortfall is due to increased fuel and maintenance costs. Revenue is being pushed down by 25 billion yen in part by delayed service expansion as a result of grounding of the Boeing 787 Dreamliner, along with weak demand on its China routes.
(The Nikkei, Oct. 31 morning edition)