Australia's Patrick Corp sees 10-15 pct drop in profit due to Virgin Blue
SYDNEY (XFNews) - Patrick Corp Ltd said it now expects its September fiscal year net profit to be 10-15 pct lower than last year's 188 mln because of the impact of high fuel costs on 62.4 pct owned airline operator, Virgin Blue Holdings Ltd.
It said it expects the net impact from Virgin Blue on its own profit to be a reduction of 40-55 mln aud before one-offs, but said its other businesses are expected to report higher profits than a year earlier.
Nevertheless, it said, the increases will not be sufficient to offset the negative impact from Virgin Blue.
Earlier, Virgin Blue said it expects its fiscal 2005 net profit to fall to 90-100 mln aud from 159 mln reported for the September 2004 year because of rising fuel costs.
Virgin Blue now estimates that for the September year, its fuel costs will be about 150 mln aud higher than the previous year's.
Australia's Patrick Corp Ltd moved to majority control of Virgin Blue earlier this year via a takeover offer which was not accepted by British entrepreneur Richard Branson's Virgin Group which owns 25.6 pct of the carrier.