Fraport Executive Board Wants to Raise 2010 Dividend to 1.25 Euros
Posted: 25 January 2011 | Fraport | No comments yet
Fraport AG’s executive board will recommend to the supervisory board that the 2010 dividend be raised from €1.15 to €1.25 for the annual general meeting (AGM) on June 1, 2011…
Fraport AG’s executive board will recommend to the supervisory board that the 2010 dividend be raised from €1.15 to €1.25 for the annual general meeting (AGM) on June 1, 2011. Thus, this reflects the overall positive development, which was already evidenced in the company’s published third quarter figures. After tax profit will improve for full year 2010, increasing to about €270 million from €152.0 million in 2009.
The increase in after tax result includes €80 million received from the release of provisions – in connection with an audit for 1999 to 2002. Fraport received the corresponding tax assessment today. The tax treatment of the Group’s Manila engagement was an essential part of the tax audit.
As the executive board announced, the release of provisions adds to the overall picture of strengthening profitability for the current business year. For example, traffic volumes at Frankfurt Airport (FRA) have recovered noticeably. If flight operations had not been reduced due to severe winter weather, the pilot strike, and the shutdown of European airspace during the multi-day ash cloud crisis, then FRA would have recorded well over 54 million passengers in 2010 – corresponding to an increase of more than six percent – and a new record figure would have been reached. With 2.23 million metric tons, FRA already registered its highest airfreight throughput last year.
During the next few years, Fraport’s executive board expects ongoing air traffic growth at the company’s Frankfurt Airport home base. Despite the frosty December period, construction of the new Runway Northwest is fully on schedule for inauguration this October at the beginning of the Winter Timetable 2011/2012. Thus, FRA’s future competitiveness and economic prosperity of the Frankfurt/Rhine-Main region will be secured sustainably. At the same, the Group’s external business is enjoying a steady upsurge. Fraport AG’s international investments now account for 20 percent of total revenue but generate some 30 percent of the company’s EBITDA (earnings before interest, tax, depreciation and amortization).
“All of this is proof positive that Fraport AG is well on track and excellently positioned to master the challenges ahead,” stated Fraport executive board chairman Dr. Stefan Schulte. The dividend increase has to be approved by Fraport’s supervisory board and later by the AGM on June 1, 2011. Preliminary figures for the 2010 financial year will be presented on March 11, 2011.