Cimber Sterling drops to seven-month low on loss forecast

Shares in Cimber Sterling plummeted 13% in trading yesterday, as the carrier announced it expects to make a loss of DKK125 million-145 million for FY2010/11. Cimber Sterling reported a EUR15.8 million loss for the three months ended 31-Dec-2010, reversing the EUR12.8 million profit it achieved in the previous corresponding period.

Revenue at the carrier rose 18%, but this was more than matched by the 29% increase in operating costs. Fuel costs rose 41% and the carrier was also affected by the harsh European winter weather.

Cimber Sterling financial highlights for the three months ended 31-Dec-2010:

  • Revenue*: EUR53.0 million, +18% year-on-year;
  • Operating costs: EUR38.7 million, +29%;
    • Fuel: +41%;
  • Operating profit (loss): (EUR19.7 million), compared with a loss of EUR14.7 million in p-c-p;
  • Profit (loss) before tax: (EUR21.1 million), compared with a loss of EUR16.8 million in p-c-p;
  • Net profit (loss): (EUR15.8 million), compared with a loss of EUR12.8 million in p-c-p;
  • Passenger numbers: 426,000, +21.0%;
  • Load factor: 61%, +5 ppts;
  • Yield: EUR 16.22 cents, +27.4%;
  • Revenue per ASK: EUR 9.65 cents, +35.8%;
  • Cost per ASK: EUR 12.20 cents, +23.0%;
  • Total assets: EUR135.6 million, -7.0%;
  • Cash and cash equivalents/securities: EUR603,313, -93.9%;
  • Total liabilities: EUR127.9 million, +18.2%.

* Based on the conversion rate EUR1 = DKK7.45881

Selected EAD daily share price movements (% change): 16-Mar-2011