QF profit to fall 90% - shares falling

[markis10]

Lucky to make 100M this year!

http://www.asx.com.au/asxpdf/20120605/pdf/426np2dqlc6z3k.pdf

QFI - $450M loss
Industrial Action cost $100M

 

[TheInsider]

And people still say there isn't enough competition!

 

[browski]

Irrespective of whether any other strategy could have returned a better result, I think it is safe to assume that:

AJ = Dead man walking.

(the only thing left for him to secure now is the perfunctory, odorous ex-gratia payout. Well played, AJ)

 

[SeatBackForward]

So $100million is attributable to the industrial action taken last year. A spontaneous decision taken by the CEO (as we were reassured last week), shareholders should be cruicifying such an impact.

 

[serfty]

At least they made some sort of profit, maybe not up there in Income to Asset KPIs. Many other airlines cannot make that claim.

 

[markis10]

Ouch, shares are down 17c to $1.24

Edit - Make that $1.21 or 20.5c

 

[Kendall Roy]

Irrespective of whether any other strategy could have returned a better result, I think it is safe to assume that:

AJ = Dead man walking.

Highly doubt he'll get the punt anytime soon! The Board are also in on the act!

If those QFi numbers are not a result of creative accounting, one can only think they're finished in the medium term!

 

[NM]

So $100million is attributable to the industrial action taken last year. A spontaneous decision taken by the CEO (as we were reassured last week), shareholders should be cruicifying such an impact.

Some may suggest that the grounding action limited the cost to $100M, while allowing the ongoing disruptions may have cost even more. I don't have enough visibility of the facts to make my own determination about the costs associated with the actions from both sides of the dispute.

 

[NM]

Ouch, shares are down 17c to $1.24

Edit - Make that $1.21 or 20.5c

Whole ASX is down, not just QF.

 

[medhead]

That's one of the most schizophrenic announcements. QFi is all doom but everything is rosy for the rest of the group.

I especially love how the full $100 million for the grounding has been put onto QFi. "The structural issues in the business etc. etc. etc. - as well as the $100 million one-off cost of industrial action"

That load of BS finishes the comments about QFi, the next paragraph paragraph tells us how great QFd and JQ are going.

Then we have one off cost of $370-$380 mil for the transformation, which sounds like they are being put onto QFi. Does that mean, without the transformation, we can reduce the QFi loss of $450mil by the one off cost of $380mil and see that QFi has actually improved its loss from $216mil to ~$70mil, before one off costs. What if we also take out the one off $100mil that seems to be put onto QFi?


Sent from the Throne

 

[oz_mark]

So $100million is attributable to the industrial action taken last year. A spontaneous decision taken by the CEO (as we were reassured last week), shareholders should be cruicifying such an impact.

The industrial action cost was disclosed when the half year results were disclosed months ago, so is hardly new news. If they were going to do anything, it would already have happened.

Also, the shutdown was only the final act in the overall industrial action.

 

[rechoboam]

At least they made some sort of profit, maybe not up there in Income to Asset KPIs. Many other airlines cannot make that claim.

ROE is almost zero.

Honestly I don't understand the rest of the airline industry or how airlines can bump along for years with no profits and going into administration again and again as happens in the US.

But the picture and figures below are grim in every respect. The international wing obviously is reported as not making some sort of profit at all. We will see before too long.

 

[markis10]

If AJ was not there I would be tempted to get in I must say:

 

[browski]

Whole ASX is down, not just QF.

Yeah, but the whole ASX yesterday went down ~2% and QAN went down 19%.
Today the market is up 1.3% and QAN still sinking.

 

[markis10]

Yeah, but the whole ASX yesterday went down ~2% and QAN went down 19%.
Today the market is up 1.3% and QAN still sinking.

QAN was only down 3.1% yesterday

[TABLE="class: marketDetails"]
[TR]
[TD] [/TD]
[TD] Date[/TD]
[TD] Change[/TD]
[TD] Open[/TD]
[TD] High[/TD]
[TD] Low[/TD]
[TD] Close[/TD]
[TD] Volume[/TD]
[/TR]
[TR="bgcolor: #f9f9f9"]
[TD]
[/TD]
[TD] 04/06/2012[/TD]
[TD] -3.1%[/TD]
[TD] $1.430[/TD]
[TD] $1.445[/TD]
[TD] $1.410[/TD]
[TD] $1.420[/TD]
[TD] 6,291,377[/TD]
[/TR]
[/TABLE]

 

[TheInsider]

Seems to be a perfect price for someone to buy! Geoff Dixon maybe

 

[muppet]

Whole ASX is down, not just QF.

ummm it's up about 1.2% across the board - so far anyway.
bit different to down 15%

 

[browski]

QAN was only down 3.1% yesterday

[TABLE="class: marketDetails"]
[TR]
[TD][/TD]
[TD] Date[/TD]
[TD] Change[/TD]
[TD] Open[/TD]
[TD] High[/TD]
[TD] Low[/TD]
[TD] Close[/TD]
[TD] Volume
[/TD]
[/TR]
[TR="bgcolor: #f9f9f9"]
[TD][/TD]
[TD] 04/06/2012[/TD]
[TD] -3.1%[/TD]
[TD] $1.430[/TD]
[TD] $1.445[/TD]
[TD] $1.410[/TD]
[TD] $1.420[/TD]
[TD] 6,291,377[/TD]
[/TR]
[/TABLE]

So we agree that today's QAN price has little to do with the overall ASX performance.

 

[markis10]

So we agree that today's QAN price has little to do with the overall ASX performance.

Huh, what are you talking about, you said they dropped 19% yesterday which was not true:

Yeah, but the whole ASX yesterday went down ~2% and QAN went down 19%.
Today the market is up 1.3% and QAN still sinking.

Given QAN is an ASX 100 stock , of course its price has an impact on the market figures! Duh!

 

[dougieboy]

This will create pressure on unions to back off on their respective campaigns, readjusting their expectations and more importantly managing them. AJ is sweeping the floor as a mover and shaker. Clearing the decks before the spin offs commence. Floating a division that is making a profit is far more attractive than not restructuring a legacy carrier and relying upon its brand image with the Australian public to see it through the bad times. Also consider the psychology of the current market; negativity is the new black so milk it for what it's worth by improving the bottom line and earn that all mighty performance bonus lol. If aviation is a game of chess QFI is a pawn that's going to be sacrificed to protect 'mainline' at all costs.