Fraport says sees 2009 earnings, sales down
Passenger numbers both at Frankfurt airport and in the group as a whole would decline year-on-year in 2009, the company said on Thursday. In Frankfurt, numbers would improve again in 2010.
Fourth-quarter 2008 earnings before interest, tax, depreciation and amortisation (EBITDA) rose 20 percent to 108.2 million euros ($135.6 million), beating analyst estimates.
Eleven analysts in a Reuters poll had an average estimate of 101 million euros.
Fraport has said it expected passenger numbers and cargo volumes to keep shrinking in coming months as the global economic crisis continues to stunt business travel and consumer spending.
In January, the number of passengers processed at the company's main Frankfurt airport slumped more than 10 percent from the year-earlier period, while total cargo volume was down more than 23 percent.
The head of European industry body ACI Europe said last month 2009 would be an "annus horribilis" for airports in the region, especially as air freight has been developing poorly.
Nonetheless, Ferrovial (FER.MC) — which owns UK airports operator BAA — has said it expected its earnings to improve in 2009 from 2008. The company's earnings last year suffered from the removal of tax relief for its UK airports.
Fraport stock trades at 14.3 times 12-month forward earnings, according to Thomson Reuters StarMine, which weights analysts' forecasts according to their track record.
That is a discount to rivals such as Ferrovial, which trades at 15.1 times its forward earnings, as a capacity bottleneck at Frankfurt airport is expected to limit Fraport's growth prospects until the end of 2011.
