LipeGIG
Topic Author
Posts: 5050
Joined: Tue May 03, 2005 7:33 am

Tam 2Q: Loss Of US$ 10.0 Million

Fri Aug 05, 2005 12:16 pm

TAM reported a net loss of BRL 24.7 mm (about USD 10.0 million) for the second quarter.

Even with the improvement on market share (from 33.1% last year to 42.7% this year), TAM costs has been increased in 26,4% mainly because of higher fuel prices (+31%).

EBITDAR increased in 10% compared to 2004 numbers.

TAM numbers are not so good as Gol, but also obtained more than BRL 500 million as a capital increase thru Sao Paulo Stock Exchange. The company just informed that 2Q is generally the bad for an airline.

Seems they probably start to try reduce some costs (BR has announced today a reduction of about 3% on Aviation Fuel Prices).

Regards,
Felipe
New York + Rio de Janeiro = One of the best combinations !
 
erikwilliam
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RE: Tam 2Q: Loss Of US$ 10.0 Million

Fri Aug 05, 2005 10:06 pm

hummmm
interesting story.
G3 posts big profit, and JJ a loss, and RG..well...
Dida, Cafu, Lucio, Roque Junior, Roberto Carlo, Emerson, Ze Roberto, Ronaldinho, Kaka, Adriano, Robinho, Ronaldo
 
JJMNGR
Posts: 924
Joined: Wed May 26, 2004 9:06 pm

RE: Tam 2Q: Loss Of US$ 10.0 Million

Fri Aug 05, 2005 10:31 pm

Sorry folks but I have my critics about this post:

It is interesting how some posts are done....specially how they are posted about TAM.

TAM had a loss of USD10 million only the last 03 months of the semester...nobody paid attention that it ended the semester with a profit of USD12.8 million!!!

The results are lower than expected but still being profitable.

GOL published it results also and according to press, they also had profit but this profit is 77% lower that last period!!!

Cheers.
 
LipeGIG
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RE: Tam 2Q: Loss Of US$ 10.0 Million

Sat Aug 06, 2005 1:55 am

Quoting JJMNGR (Reply 2):
Sorry folks but I have my critics about this post:

It is interesting how some posts are done....specially how they are posted about TAM.

TAM had a loss of USD10 million only the last 03 months of the semester...nobody paid attention that it ended the semester with a profit of USD12.8 million!!!

The results are lower than expected but still being profitable.

GOL published it results also and according to press, they also had profit but this profit is 77% lower that last period!!!

JJMNGR: I made the both posts (Tam and Gol), both using same criteria (second quarter "XXX 2Q results: xxxxxxxx of USD xx.x"), and the way you talk you corrupt your first quarter profit, or accounting procedures and int'l / BR Gaap has changed ? I can't agree with anyone try to telling me that a loss on a quarter is a situation that you can say "still profitable". I have made no analysis on First 6 months, both were 2Q. And also, i tried to talk about the higher fuel prices as the reason. How not to compare numbers ? Bradesco vs Itau, CSN vs Usiminas, that's the way market use to compare corporations.

You can say that the result was also driven by a high marketing expense due to the new intitutional campaign while some improvements on the cash position (net availability of BRL 560 mm).

I like TAM, and i'm a Tam frequent (very) customer, i have no intention to hit the company or the people working there. Sorry if it was the feeling but it was not my intention.

Rgds,
Felipe
New York + Rio de Janeiro = One of the best combinations !
 
LipeGIG
Topic Author
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RE: Tam 2Q: Loss Of US$ 10.0 Million

Sat Aug 06, 2005 1:57 am

Also, TAM stock today: + 4,16%


The market seems that numbers (with a good EBITDAR increase), were in fact good and could drive Tam for better results on 3Q.


Felipe
New York + Rio de Janeiro = One of the best combinations !
 
PPVRA
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Joined: Fri Nov 12, 2004 7:48 am

RE: Tam 2Q: Loss Of US$ 10.0 Million

Sat Aug 06, 2005 3:50 am

To continue on the subject of "TAM," I just read a report that TAM is looking for a date to begin ops to LIM (already have the rights) and is looking into a possible MAO-CCS flight.

On the 2Q losses, lower profits, higher fuel prices, in general not-so positive Q for the entire industry subject, RG increased all of their domestic fares by 10% (except CGH-SDU) and TAM/GOL are expected to follow soon.

Cheers,
PPVRA
"If goods do not cross borders, soldiers will" - Frederic Bastiat
 
LipeGIG
Topic Author
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RE: Tam 2Q: Loss Of US$ 10.0 Million

Sat Aug 06, 2005 7:50 am

Quoting PPVRA (Reply 5):
On the 2Q losses, lower profits, higher fuel prices, in general not-so positive Q for the entire industry subject, RG increased all of their domestic fares by 10% (except CGH-SDU) and TAM/GOL are expected to follow soon.

And the Aviation fuel has fallen 3%. They are trying to improve their margins, which nowadays are very low. Expect that they keep with some prices like RIO-SAO (not Shuttle service).

Rgds,
Felipe
New York + Rio de Janeiro = One of the best combinations !
 
JJMNGR
Posts: 924
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RE: Tam 2Q: Loss Of US$ 10.0 Million

Sat Aug 06, 2005 11:18 pm

LIpeGIG,

No heart feelings buddy...It was just my opinion...no Offense here.

By the way I like your posts...I just did a comment. Just that.

Bom final de semana!

Richard
 
JJMNGR
Posts: 924
Joined: Wed May 26, 2004 9:06 pm

RE: Tam 2Q: Loss Of US$ 10.0 Million

Sat Aug 06, 2005 11:21 pm

The press did some correction. Sorry for those who don´t undertant portuguese but here is the link:

http://www1.folha.uol.com.br/folha/dinheiro/ult91u98877.shtml

Cheers.
 
LipeGIG
Topic Author
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Joined: Tue May 03, 2005 7:33 am

RE: Tam 2Q: Loss Of US$ 10.0 Million

Sat Aug 06, 2005 11:37 pm

Quoting JJMNGR (Reply 7):
LIpeGIG,

No heart feelings buddy...It was just my opinion...no Offense here.

By the way I like your posts...I just did a comment. Just that.
Bom final de semana!
Richard

No problem. Just a little debt of some chopps and caipirinhas!  Smile

By the way, 4 flights with JJ in the last 2 days... and now in Rio de Janeiro just to enjoy the weekend! Hot & Sunny like Sao Paulo this morning (i get the JJ8097 today)

Bom fim de semana pra você tambem!

Felipe
New York + Rio de Janeiro = One of the best combinations !
 
LipeGIG
Topic Author
Posts: 5050
Joined: Tue May 03, 2005 7:33 am

RE: Tam 2Q: Loss Of US$ 10.0 Million

Sat Aug 06, 2005 11:44 pm

Quoting JJMNGR (Reply 8):
The press did some correction. Sorry for those who don´t undertant portuguese but here is the link:

http://www1.folha.uol.com.br/folha/d...shtml

And also some good news, i read yesterday on "Estado de Sao Paulo" newspaper that TAM will decide until the end of year if they keep with less than 100 seats aircrafts on their fleet, which could produce an order to Embraer in order to buy some E-190 !
I pray to the government finds a way that allow Tam and others to buy Embraer products (top!), with good (or even better) conditions like import an Airbus or a Boeing.

Rgds,
Felipe
New York + Rio de Janeiro = One of the best combinations !
 
JJMNGR
Posts: 924
Joined: Wed May 26, 2004 9:06 pm

RE: Tam 2Q: Loss Of US$ 10.0 Million

Sun Aug 07, 2005 9:08 pm

Yes you are right...actaully is more cheap to bring any EMB form a foreign lesor than do it direct with Embraer.....

And what is more funny on this and I never heard nobody mentioning is that Brazil has a law that states as forbidden to trade any product in the country on foreign currency, other than national money.
If a Brazilian airline wants to buy any EMB product will pay it is US!!!!

But law in this country os not for everybody...............
 
LipeGIG
Topic Author
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Joined: Tue May 03, 2005 7:33 am

RE: Tam 2Q: Loss Of US$ 10.0 Million

Mon Aug 08, 2005 12:08 pm

Quoting JJMNGR (Reply 11):
Yes you are right...actaully is more cheap to bring any EMB form a foreign lesor than do it direct with Embraer.....

And what is more funny on this and I never heard nobody mentioning is that Brazil has a law that states as forbidden to trade any product in the country on foreign currency, other than national money.
If a Brazilian airline wants to buy any EMB product will pay it is US!!!!

I know by some friends that BNDES is working to provide a special line of credit to avoid this problem. Hope they can work with JJ and even with others to improve the use of E-Jets on domestic routes.

Felipe
New York + Rio de Janeiro = One of the best combinations !

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