FRANKFURT am MAIN,
Germany,
May 27 /PRNewswire-FirstCall/ -- At the
regular annual general meeting for shareholders in Frankfurt-Hoechst today,
Fraport executive board chairman Prof. Dr.
Wilhelm Bender announced that "in
2008 we reached our goals for key financial indicators despite all the
difficulties resulting from the beginning worldwide economic crisis" - even
though the Fraport Group's revenue declined by 9.8 percent to
EUR2.1 billion,
due to the divestiture of the wholly-owned ICTS Europe security subsidiary.
However, Group earnings before interest, taxes, depreciation and amortization
(EBITDA), or operating results, reached a new record level of
EUR600.7
million, up 3.5 percent year-on-year. Primarily because of higher interest
expenditures, Group profits slipped below the 2007 figure to
EUR180.2
million, as already announced. The executive and supervisory boards are
recommending that shareholders receive a dividend of
EUR1.15 per share again
for the 2008 fiscal year - the third consecutive year for this high dividend
payout. The dividend yield is rising by 3.7 percent to 2.1 percent
year-on-year.
Bender is convinced that "following the current economic slump the global
aviation industry will return to its long-term growth path." Over the past
decades, a consistent pattern has emerged following crises situations: from
the oil crises of the 70s and 80s to the Gulf and Iraq wars, to the terrorist
attacks on September 11, 2001; crisis-related traffic declines are always
followed by an over-proportionate recovery phase. "Every time, the air
transportation industry has reemerged strongly on its globally oriented
long-term growth path," said Bender. No one doubts that globalization and
internationalization of the division of labor will further intensify in the
coming years. "That's why the world economy needs an efficient global air
transportation industry that links the numerous growth centers of the world
together."
Therefore, Fraport's CEO described the launch of Frankfurt Airport's
capacity expansion in early 2009 as absolutely indispensable, despite the
temporary decline in traffic figures. "For several years now, FRA's capacity
constraints have been limiting our development and endangering the long-term
economic perspectives of the Frankfurt/Rhine-Main region," said Bender.
Without this sustainable capacity expansion, Fraport would be threatened by a
loss of vital market share when the expected economic recovery occurs.
Frankfurt Airport's expansion in the coming years, with an investment
volume of about EUR7 billion from 2007 through 2015, is one the largest
investment projects in Europe. Especially during these currently difficult
economic times, Fraport's privately financed program will have a significant
positive impact on the economic development of the Frankfurt/Rhine-Main
region and far beyond. Many thousands of jobs will be secured and
approximately 100,000 new jobs created.
In view of this year's economic situation, it is extremely difficult to
provide an outlook for Fraport's expected business development in 2009,
explained Bender: "Already the first quarter was anything but satisfying,
with declining traffic figures. But compared to other MDAX and DAX listed
companies, Fraport at least continued to operate clearly in the black." With
only a slight decline in the adjusted Group revenue of 1.5 percent due to
consolidation effects, the EBITDA from January to March 2009 almost reached
EUR100 million and the first-quarter Group profit still hit EUR22.3 million.
Frankfurt Airport, in Bender's words, will not be able to escape
developments in global aviation and the world economy. Fraport is expecting a
six to nine percent drop in passenger traffic at FRA during 2009. Cargo will
experience an even sharper decline. Fraport believes that a sustainable
recovery trend will take firm hold in 2010 - which will bring about worldwide
growth in air traffic figures again.
Revenue in fiscal 2009 will drop below the 2008 figure - also because of
the absence of ICTS sales recorded in the first quarter of 2008 and full-year
2008 sales reported for Frankfurt-Hahn Airport. Bender said: "We expect Group
EBITDA to reach between EUR500 and EUR530 million. As already forecast at the
beginning of the year, Group profits will also be below the 2008 figure."
Print-quality photos of Frankfurt Airport and Fraport AG are available
free for downloading via the Internet at http://www.fraport.com (Menu: select
Press Center > then Photo Service). For TV news and information broadcasting
purposes only, we also offer free footage material for downloading via
http://fraport.cms-gomex.com.
For Further information, Please Contact:
Fraport AG Frankfurt Airport Services Worldwide
Robert A. Payne, B.A.A. - Manager International Press
Press Office (Dept. UKM-PS), Corporate Communications (UKM)
60547 Frankfurt am Main, Federal Republic of Germany
Tel.: +49-69-690-78547; Fax: +49-69-690-60548;
E-mail: r.payne@fraport.de; Internet: http://www.fraport.com
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