QANTAS RESULTS FOR THE YEAR ENDED 30 JUNE 1997.SYDNEY--(BUSINESS WIRE)--August 21, 1997-- HIGHLIGHTS: Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before tax and abnormals of $A420.9 million, up 4.9 percent on prior year Profit after tax before abnormals of $A260.5 million, up 5.6 percent on prior year Abnormal net loss of $A17.2 million Total dividend 13.0 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , including fully franked final dividend 6.5 cents per share Revenue increased by 3.1 percent to $A7.8 billion Cashflow from operations increased by 18.6 percent to $A1.1 billion Debt to Equity ratio The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of equity and debt used to finance a company's assets. It is equal to total debt divided by shareholders' equity. improved by twelve percentage points to 49:51 QANTAS QANTAS Queensland And Northern Territory Aerial Services Ltd. INCREASES FULL YEAR PROFIT Qantas today reported an operating profit before tax and abnormal items of $A420.9 million for the year ended 30 June 1997, an increase of 4.9 percent over 1995/96. Profit of $A260.5 million after tax before abnormal items was 5.6 percent higher than the prior year. After net abnormal losses of $A17.2 million ($A7.8 million after tax) in the current year, profit before tax of $A403.7 million and profit after tax of $A252.7 million were both higher than last year. The Directors declared a fully franked final dividend of 6.5 cents per share - following an unfranked interim dividend of the same amount - bringing total dividends for the year to 13.0 cents per share. Qantas Chairman, Mr Gary Pemberton, said the result was very pleasing and in line with expectations despite the difficult trading environment. "The impact of relatively low revenue growth, higher fuel prices and increases in the unit cost of labour were offset by gains in operational efficiency and productivity. "The last three years has been the airline's strongest ever period of business growth based on strategies of selective route development, priority investment in products and services, and cost offsets from improved productivity and operating efficiency," Mr Pemberton said. A net abnormal loss of $A17.2 million has been reported for the current year consisting of three components; the gain of $A99.4 million on the sale of the Air New Zealand Parameter not given Error... ''Template needs its first parameter as beg[in], mid[dle], or end. Parameter not given Error... shareholding; an accelerated write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of $A56.6 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc international aircraft seat and in-cabin assets pending their replacement as part of the "Flying Towards 2000" fleet reconfiguration program; and staff redundancy costs of $A60 million. "These abnormal losses reflect our fundamental commitment to investing in the Qantas product and to rationalising operations to improve effectiveness and efficiency," Mr Pemberton added. "This process will need to continue during the 1997/98 year with tough trading conditions again expected. "We expect demand in the domestic economy will remain soft, putting pressure on yields and volumes in both our international and domestic operations. Revenue growth is likely to be modest and fuel prices are anticipated to remain relatively high. Whilst results for July have been in line with expectations, we are still cautious about the prospects for the 1997/98 financial year. We are targeting a small improvement in operating profits," Mr Pemberton said. "On behalf of the Qantas Board, I would like to acknowledge the efforts of management and staff in achieving this result in a difficult year. In recognition of their contribution, the Board has approved a further bonus share allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as worth approximately $A500 to each eligible employee under the Qantas Staff Share Plan." Operational Performance Qantas Chief Executive, Mr Strong said the second half of the year reflected a continuation of conditions experienced during the first six months. "Total revenue growth for the year was 3.1 percent, including net passenger revenue growth of 1.8 percent. Overall, passenger yield declined by six percent. Excluding the impact of foreign currency movements, passenger revenues increased by 4.9 percent after a yield reduction of 3.2 percent. "Qantas faces direct competition from 47 other international airlines flying into Australia, with price cutting prevalent in most markets. The revenue growth achieved during the year came through aggressive marketing campaigns which resulted in an 8.6 percent increase in the number of international passengers. Despite these achievements, Qantas experienced a continuing decline in yield, a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. trend which is characteristic of the industry. "A great deal of attention and effort is being directed towards this important issue of yield. Steps taken include significant investment in product and service standards ($A560 million over three years announced in May 1997), together with expenditure on maintaining a strong market image and presence. During the year Qantas also completed the QUBE project, involving an investment of more than $A100 million over three years to introduce improved systems for reservations and yield management." Mr Strong said that the improved profit result was achieved after absorbing increases in fuel prices, net of price hedging gains, of more than $A100 million over the previous year. "In relation to the abnormal losses, the configuration changes and product initiatives are clearly an investment for the future aimed at maintaining and strengthening our competitive position. Redundancy costs are the result of a range of initiatives to improve productivity and efficiency," Mr Strong said. "Over the last three years Qantas has expanded at a significant rate. We have achieved growth based on better asset utilisation and greater efficiency. During this period, passenger numbers increased by over 30 percent, capacity by over 25 percent and employment levels by over 12 percent. "The review of cost competitiveness throughout Qantas is being carefully managed with staff involvement. We have increased staffing levels where needed to service growth, whilst at the same time progressively examining specific areas of activity to measure their cost, effectiveness and productivity. Qantas can only counter increasing competition by improving its performance. This process, by its nature, has resulted in some redundancies. "The continuing growth in expenditure on maintenance and materials indicates our clear commitment to our record of safety and reliability. The major investment program in products and services demonstrates our continuing focus on quality. "We recognise the value of commercial alliances and will ensure these are utilised to protect and improve our competitive position," Mr Strong added. "The value of the British Airways British Airways in full British Airways PLC International passenger airline based in London. In 1936 British Airways Ltd. was founded through the merger of three smaller airlines. alliance has been clearly demonstrated. As globalisation progresses, we see our future as being an integral part of a high quality world alliance." Turning to segment performance, Mr Strong said that profits from domestic routes were up on the prior year, despite marginal reductions in load factors and yield. Domestic airline operations contributed $A168.3 million in Earnings Before Interest and Tax (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ), an increase of 2.9 percent over the previous year. This improvement was achieved through an increase of 3.5 percent in domestic passenger revenues, reflecting increased Revenue Passenger Kilometres (RPKs) of 3.8 percent and domestic passenger numbers of 2.5 percent. International operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. contributed $A274.7 million in EBIT, an increase of 2.6 percent. New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. and Japan recorded losses, impacted by price cutting, competitive pressures and market conditions. Other international routes generally provided improved returns driven by higher passenger volumes. Operations on a number of loss making routes were reduced during the year, including some trans-Pacific services. New routes to Mumbai (Bombay) and Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. provided encouraging results. "Tighter management of capacity and performance on individual routes, combined with disciplined growth is designed to reduce volatility," Mr Strong added. Excluding the impact of movements in foreign exchange rates, international passenger revenues grew by 4.3 percent over the prior year and RPKs increased by 9.3 percent. Yield, excluding foreign exchange movements, fell by 4.6 percent reflecting greater price competition. International load factors increased by 1.3 percentage points. Despite the unfavourable effect on revenues of movements in foreign exchange rates, the overall impact on the profit result was negligible  This article or section is written like a personal reflection or and may require .Please [ improve this article] by rewriting this article or section in an . , due to savings in foreign currency denominated expenditures and hedging strategies. Subsidiary operations contributed $A74.2 million to the Group's EBIT, an increase of $A1.2 million or 1.6 percent over the contribution from the prior year. The increased returns from subsidiary operations were primarily due to improved performances from Qantas Holidays and Qantas Flight Catering, offset by a reduction in contribution to EBIT from the Group's regional airlines. Financial Performance Qantas Chief Financial Officer, Mr Gary Toomey said that cost savings were achieved during the year from improved aircraft utilisation and labour productivity, reductions in aircraft operating costs operating costs npl → gastos mpl operacionales and savings in property, sales, marketing and overhead costs overhead costs see fixed costs. . Total cost savings from new initiatives in the current year reached $A563.8 million. "Overall, excluding the impact of exchange movements, cost per Available Seat Kilometre (ASK) fell by 2.3 percent which made a significant contribution to the improved profit result," Mr Toomey said. Cash flows from operations totalled $A1.1 billion, up 18.6 percent on the prior year. "Excess cash has been applied to debt reduction, continuing the significant improvement in the balance sheet," Mr Toomey said. A further $A569.8 million of debt, excluding prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. , was repaid during the year. This brought the debt to equity ratio, (including non-cancellable operating leases Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. and on a hedged basis) to 49:51, down from 61:39 at 30 June 1996. "Capital expenditure for the year was $A610.6 million, an increase of 21.3 percent over the prior year. This reflected additional expenditure on airport terminal developments and aircraft acquisitions. Three Boeing 767-300's and one Boeing 737-400 aircraft were added to the core airline fleet during the year, with two additional Boeing 767-300 aircraft planned during the 1997/98 year," Mr Toomey said. Total income tax expense fell by $A3.7 million, or 2.4 percent. The Group's effective tax rate before abnormal items of 38.1 percent differed from the prima facie [Latin, On the first appearance.] A fact presumed to be true unless it is disproved. In common parlance the term prima facie is used to describe the apparent nature of something upon initial observation. rate primarily due to recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. levels of non-deductible expenditure. The fully franked final dividend of 6.5 cents per share is payable on 3 December 1997, with a record date (books close) of 5 November 1997. -0- Note to editors: All dollar amounts are shown in Australian dollars Noun 1. Australian dollar - the basic unit of money in Australia and Nauru dollar - the basic monetary unit in many countries; equal to 100 cents . CONTACT: Qantas Public Affairs Those public information, command information, and community relations activities directed toward both the external and internal publics with interest in the Department of Defense. Also called PA. See also command information; community relations; public information. (Q4921) Media Inquiries: Bernard Shirley/Belinda de Rome, Sydney Tel.: 02 9691 3469 or 9691 3762 Qantas Airways Limited Qantas Airways Limited Australian airline, the oldest in the English-speaking world, founded in 1920 as Queensland and Northern Territory Aerial Services Ltd. (later abbreviated as Qantas). By 2002 it had more than 140 destinations in over 30 countries. ACN ACN Accenture (stock symbol) ACN Accenture ACN Australian Company Number ACN Automatic Collision Notification (US DOT) ACN Acetonitrile ACN Anglican Communion Network 009 661 901 Internet address There are two kinds of addresses that are widely used on the Internet. One is a person's e-mail address, and the other is the address of a Web site, which is known as a URL. Following is an explanation of Internet e-mail addresses only. For more on URLs, see URL and Internet domain name. : http://www.qantas.com.au |
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