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Atlas Air Worldwide forecasts reduced profitability in 3Q2013 and 4Q2013

1-Nov-2013 9:59 AM

Atlas Air Worldwide Holdings reported (31-Oct-2013) reduced anticipated profitability for 3Q2013 and 4Q2013. The company expects to report fully diluted earnings per share of USD1.13 on an adjusted basis and USD0.94 per share on a reported basis for 3Q2013. The company anticipates fully diluted earnings per share of USD3.40 to USD3.80 on an adjusted basis and USD3.75 to USD4.15 on a reported basis for the year ending 31-Dec-2013. The forecast reflects a much less robust commercial airfreight peak season than previously anticipated. Airfreight yields remain under pressure, despite strengthening volumes, and military cargo volumes declined at a rapid rate. These challenges are partly offset by increasing contributions from investments intended to diversify the company's business mix, including new Boeing 747-8Fs in its core ACMI business, the addition of 777Fs in dry leasing, an expanding 767F service platform, new military and commercial charter passenger operations and continuing growth in non-asset-intensive CMI operations. Atlas Air president and CEO William J Flynn said, "The initiatives we have undertaken to strengthen our core ACMI operations, diversify our business mix, and enhance our operating efficiency have enabled us to continue to generate significant profitability despite soft commercial charter market yields over the past three years and a material reduction in U.S. military cargo demand that we have long prepared for. We remain focused on the long-term growth of our business, and will continue to leverage our core competencies and industry leadership to deliver advantages and value to our customers and stockholders." The company intends to release its full 3Q2013 results and revised 2013 outlook on 07-Nov-2013. [more - original PR]