Flughafen Wien Warns On Q3 Profit
Airport operator Flughafen Wien warned on Friday that one-off items, including a problematic terminal extension at Vienna Airport and a fall in value of an airport in Slovakia, would hit its third-quarter results.
"The impairment charges and non-recurring effects of approximately EUR€74 million (USD$100 million) are attributable to the terminal extension Skylink, the investment in Kosice Airport and an investment property at Vienna Airport," it said, adding it would also book provisions to cover part-time work for older employees.
"These non-recurring effects will have a negative effect on earnings in the third quarter of 2011, and preliminary net income for the first nine months of this year will fall to approximately EUR€20 million," it added.
It said it had identified damages of approximately EUR€57 million "as the result of deficient performance by contractors and unjustified increases in cost" at its Skylink project. It took EUR€29 million in charges for this and said it would seek compensation from the companies involved.
It marked down the value of its stake in Slovakia's Kosice airport by EUR€21 million.
"This company was profitable in the past, but the latest medium term forecasts indicate that traffic growth will fall substantially below earlier expectations," it said.
Detailed results on the first nine months will be announced on November 24.