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CO Q4 Profits And Charges  
User currently offlineMasseyBrown From United States of America, joined Dec 2002, 5438 posts, RR: 7
Posted (4 years 8 months 3 days 22 hours ago) and read 3057 times:

CO quietly release the fact they expect to take $77 million worth of charges against earnings in the fourth quarter. This is approximately $77 million more than was contained in their mid-December guidance. Presumably this reflects some newly-made choices. Their will be a reduction of this number by an expected tax benefit the amount of which was undetermined but would be released with the earnings. The earnings will be released on Thursday, allowing three days to "determine" what the tax benefit will be.

I have decided not to insert here a snide comment about Smisek's legal background.

Based on the mid-December guidance, I though CO had a shot at a slim profit for the quarter. Now between the charges and the snow, I think they'll lose about 10-15 cents a share.

The news on charges: http://www.continental.com/web/en-US...apps/vendors/default.aspx?i=PRNEWS

[Edited 2010-01-19 21:26:21]


I love long German words like 'Freundschaftsbezeigungen'.
18 replies: All unread, jump to last
 
User currently offlineOA412 From United States of America, joined Dec 2000, 5275 posts, RR: 24
Reply 1, posted (4 years 8 months 3 days 22 hours ago) and read 3042 times:

So are we talking 4th quarter loss and full year profit?


Hughes Airwest - Top Banana In The West
User currently offlineMasseyBrown From United States of America, joined Dec 2002, 5438 posts, RR: 7
Reply 2, posted (4 years 8 months 3 days 11 hours ago) and read 2689 times:

Full year profit? They wish. There will be a loss for Q4 and the full year 2009. A profit for the full year 2010 is currently projected by analysts, although the company hasn't said anything.


I love long German words like 'Freundschaftsbezeigungen'.
User currently offlineMasseyBrown From United States of America, joined Dec 2002, 5438 posts, RR: 7
Reply 3, posted (4 years 8 months 2 days 13 hours ago) and read 2286 times:

OK, tiny profit after charges, as I originally thought; my pessimism is getting the better of me. Nice going for CO. Details at their 10:30AM EST webcast.


I love long German words like 'Freundschaftsbezeigungen'.
User currently offlinePanamair From United States of America, joined Oct 2001, 4910 posts, RR: 24
Reply 4, posted (4 years 8 months 2 days 11 hours ago) and read 2162 times:
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Q4 2009:
Operating Profit: $1.0 m
Operating Profit (excluding specials): $78 m
Operating Margin: +0.03%
Operating Margin excluding specials: +2.4%

Net Profit (excluding specials): $5m
Net Profit: $85m (with tax benefit)
Net Margin: +2.7%
Net Margin (excluding specials): +0.2%


User currently offlineAmatiel From United States of America, joined Aug 2009, 76 posts, RR: 0
Reply 5, posted (4 years 8 months 2 days 11 hours ago) and read 2145 times:

Way to go CAL! With how the year has gone up to this point, I believe that any profit no matter what size is worthy of praise.

It will be interesting to see in CAL's future earnings what amount of gain they show from their switch in alliances (not that Star is better than Sky, but you know CAL will show it as a positive).


User currently offlineMasseyBrown From United States of America, joined Dec 2002, 5438 posts, RR: 7
Reply 6, posted (4 years 8 months 2 days 11 hours ago) and read 2094 times:

Really interesting conference call and a bit of humor from Smisek, when he said regarding Star that it was nice to be working with partners who want the venture to succeed instead of "partners who were trying to kill us."

Fleet plans are further refined: 2010 mainline growth of 10 aircraft and regional decline of seven 7. The seven will be CRJ's with 145 losses matched by Q400 deliveries.

PDX-ANC is a seasonal add; but the discussion of Micronesian growth made it sound as if there is more to come - out of GUM and maybe more importantly out of HNL. More island resorts out of HNL?? Sounds that way.

FRA, with 65% of the inbound capacity of CO's service to AMS and CDG, is carrying 85% of the combined AMS/CDG connecting traffic. Sounds like more capacity to FRA will be forthcoming, but not before 2011.

Smisek emphasized that CO wants to offer a menu of choices to its customers. That sounds to me like more unbundling and maybe the end of free meals in coach.

The call is worth a listen.



I love long German words like 'Freundschaftsbezeigungen'.
User currently offlineCODC10 From United States of America, joined Jul 2000, 2412 posts, RR: 6
Reply 7, posted (4 years 8 months 2 days 10 hours ago) and read 2009 times:



Quoting MasseyBrown (Reply 6):
PDX-ANC is a seasonal add; but the discussion of Micronesian growth made it sound as if there is more to come - out of GUM and maybe more importantly out of HNL. More island resorts out of HNL?? Sounds that way.

I know CO is swapping several 737-800s from the Micronesia division with a greater number of 737-700s from the mainland operation later this year. While the 73G is smaller than the 738, there will be a net increase in frames available, not to mention the longer range of the 73G. I'm sure longer hauls from GUM and perhaps HNL that may be outside the range of the 738 are on the horizon.

All of CO's upcoming 737-800 deliveries (9 in 2010) have the SFP option installed, which brings the takeoff performance more in line with the 737-700. CO has already been using the handful of -800SFPs they have on property out of SNA and DCA, including the SNA-EWR route which was previously the exclusive domain of the 737-700, and, years ago, 757-200. This will allow CO to de-emphasize the use of the 737-700 on longer hauls where margins are pretty slim and reallocate them to replacing 737-300 capacity on the East Coast (ATL/DFW/ORD, etc), Latin America, and Micronesia.


User currently offlineCoalways From United States of America, joined Feb 2008, 363 posts, RR: 0
Reply 8, posted (4 years 8 months 2 days 10 hours ago) and read 1991 times:

Whats the Number? GREAT Job CO!!!

User currently offlineCODC10 From United States of America, joined Jul 2000, 2412 posts, RR: 6
Reply 9, posted (4 years 8 months 2 days 9 hours ago) and read 1858 times:

I'd love to see some more discussion on this topic... has CO become as irrelevant as EWR is to New York City???  Wink

User currently offlineMasseyBrown From United States of America, joined Dec 2002, 5438 posts, RR: 7
Reply 10, posted (4 years 8 months 2 days 7 hours ago) and read 1742 times:

Quoting CODC10 (Reply 9):
I'd love to see some more discussion on this topic...

We should change to thread title to "DL to install non-skid in jetways"; it would have 8000 hits in an hour.  

[Edited 2010-01-21 13:01:40]


I love long German words like 'Freundschaftsbezeigungen'.
User currently offlineFUN2FLY From United States of America, joined Dec 2006, 1045 posts, RR: 1
Reply 11, posted (4 years 8 months 2 days 7 hours ago) and read 1715 times:



Quoting MasseyBrown (Reply 6):
Sounds like more capacity to FRA will be forthcoming, but not before 2011.

Interesting...someone here on a.net posted CO's application for the 2nd daily 752 EWR>FRA routing. Did that not get approved by FRA? Or just delayed by CO?


User currently offlineCOflyerBOS From United States of America, joined Jun 2007, 308 posts, RR: 0
Reply 12, posted (4 years 8 months 2 days 6 hours ago) and read 1696 times:

As a frequent flyer, I say congrats to all the good women and men at Continental. You're still my favorite airline, although I did enjoy my first jetting experience with B6.

User currently offlineLetsgetwet From United States of America, joined Jul 2005, 609 posts, RR: 0
Reply 13, posted (4 years 8 months 2 days 6 hours ago) and read 1689 times:

Interesting...someone here on a.net posted CO's application for the 2nd daily 752 EWR>FRA routing. Did that not get approved by FRA? Or just delayed by CO?



EWR - MUC in March and 2nd EWR - FRA in June.


User currently offlineStyle From United Kingdom, joined Aug 2006, 263 posts, RR: 0
Reply 14, posted (4 years 8 months 2 days 4 hours ago) and read 1581 times:

Any word on what DAL is expected to post?

Great job for CO, even with the special items opposed to the non-cash income tax benefit these are great numbers.


User currently offlinePeanuts From Netherlands, joined Dec 2009, 1438 posts, RR: 4
Reply 15, posted (4 years 8 months 2 days 4 hours ago) and read 1550 times:

Quoting MasseyBrown (Reply 6):
Really interesting conference call and a bit of humor from Smisek, when he said regarding Star that it was nice to be working with partners who want the venture to succeed instead of "partners who were trying to kill us."

I don't get this. It may be a joke but maybe not such a good one, especially as a CEO. If it was meant for inside consumption, I'd say fine. If it was meant for public consumption, not very smart.
CO and SkyTeam didn't "jell" for many different reasons. To "victimize" yourself seems a bit unprofessional.

Other than that, I'm cool with CO.

[Edited 2010-01-21 15:52:10]


Question Conventional Wisdom. While not all commonly held beliefs are wrong…all should be questioned.
User currently offlineToobz From Finland, joined Jan 2010, 785 posts, RR: 0
Reply 16, posted (4 years 8 months 2 days 4 hours ago) and read 1522 times:

[quote=MasseyBrown,reply=10]
Quoting CODC10 (Reply 9):
I'd love to see some more discussion on this topic...

We should change to thread title to "DL to install non-skid in jetways"; it would have 8000 hits in an hour.  

Lol hate to say it but your most likely correct!
Even though I'm a DL "fan boy", Im happy to see CO doing good. I hope it continues!
I only hope DL numbers look as good..


User currently offlineFUN2FLY From United States of America, joined Dec 2006, 1045 posts, RR: 1
Reply 17, posted (4 years 8 months 2 days 3 hours ago) and read 1455 times:



Quoting Letsgetwet (Reply 13):
EWR - MUC in March and 2nd EWR - FRA in June.

Don't see it for sale yet. Need to go to FRA in Aug and was hoping this freed up some awards tix or dropped the price - $1350 now. Yikes.


User currently offlineMasseyBrown From United States of America, joined Dec 2002, 5438 posts, RR: 7
Reply 18, posted (4 years 8 months 1 day 21 hours ago) and read 1269 times:



Quoting FUN2FLY (Reply 11):
Interesting...someone here on a.net posted CO's application for the 2nd daily 752 EWR>FRA routing. Did that not get approved by FRA? Or just delayed by CO?

My "not before 2011" comment reflected CO's statement that international flying would increase only by about 3% in 2010 and that most of the 3% represented annualization of routes started midyear in 2009 rather than new flying. CO really needs more widebodies to expand flying meaningfully to European Star hubs.

Meanwhile, CO should probably file for Tahiti, Pago Pago, etc. soon if they want to start the route(s) next winter.



I love long German words like 'Freundschaftsbezeigungen'.
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