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Lufthansa beat our estimates and pays di vidend!


Good morning,

Deutsche Lufthansa reported an EPS figure that was much better than we were expecting. LHA reported an EPS of 68c/share and we were expecting 43c/share in 2013. They also reinstalled the dividend and will be paying out 45c/share (they had scrapped the dividend in 2012).

Revenues of €30bln were in line with our forecasts. It was an adjustment in accounting for pensions that was the main catalyst for the increase.

Management have also maintained their target to triple operating profit within two years. In our forecasts we were taking this as being too optimistic and factored in a lower operating profit for 2015 of €than what management are targeting.

The company reported operating income of €849bln compared to our expectations of €655bln.

For FY14 the company is targeting operating profit between €1.3bln – 1.5bln. Our estimates are below this target and is currently €1.2bln.

We will update our report on LHA in the coming days. We maintain our buy recommendation on the stock.

Good day

Kristian Camenzuli

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