CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI BRIEF: Fed's Goolsbee Sees Rates Fair Bit Lower In A Year

CANADA JOBLESS RATE +6.8% VS FORECAST +6.6%, PRIOR +6.5%

MNI China Daily Summary: Friday, December 6

MNI: PBOC Net Drains CNY288.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1848 Fri; -1.64% Y/Y

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Lufthansa (LHAGR; Baa3, BBB-, BBB-; S) {LHA GY Equity} 1Q Results

CONSUMER CYCLICALS

Profit warning 2-weeks ago already gave the headline numbers & revised FY24 guidance of FCF >€1b (prev. >€1.5b) on flat capex yoy (& EBIT of €2.2b (prev. €2.7b). New items for us below, we have been cautious on network carriers on the back of recent compression - markets reversed some of profit warning widening last week. Will be interested to see moves today.


  • As reminder even net of €350m in strike cost, 1Q EBIT would have missed last years -€273m loss by over €200m on lower cargo revenues. Adj. FCF was firmer €305 (€482m last yr) boosted on un-flown tickets (+€2.3b).
  • 2Q isn't expected to see a recovery; 92% of '19 capacity, RASK decline yoy & CASK increase. Adj. EBIT is expected to be down yoy - consensus is just north of €1b currently vs. last yrs €1.08b - might see revisions down on that.
  • Its 80% hedged this year on Fuel, at $937/t with expected fuel expense at €8.3b (c€8b) - we see spot at low 800s currently.
  • LTM leverage at 1.8x (from 1.7x last qtr) with net debt of €8b including €2.4b in pension liabilities. No issues in liquidity with cash on hand of €8.3b & a renewed & increased €2.5b revolver. Maturity profile is relatively front-loaded including €1b due across 2 € lines this year.
  • Reminder annual dividend restarted at €0.3/share; €360m total or 21% pay-out on net income.

Earnings call at 10:30am London; https://event.choruscall.com/mediaframe/webcast.ht...
Credit BulletsBulletHomepagemarkets-real-timeCredit
Credit BulletsBulletHomepagemarkets-real-timeCredit

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.