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German tourism giant TUI narrows loss in Q2

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(Globalpost/GlobalPost)

German tourism and travel giant TUI said Friday that it is sticking to its full-year forecasts after narrowing its losses in the second quarter.

"TUI is on track to deliver its strategic and economic targets," chief executive Fritz Joussen said in a statement.

"Lean structures and cost discipline are giving us latitude and room for manoeuvre for the future. We are fit for growth and are planning to grow again as a group," Joussen said.

TUI, which runs its business year from October to September, said that its net loss narrowed to 122.3 million euros ($168 million) in the period from January to March, from 249.7 million euros a year earlier.

Earnings also improved at an underlying level, with the operating loss shrinking to 179.6 million euros in the three-month period from 303.4 million euros a year earlier, while second-quarter sales declined by 5.3 percent to 3.165 billion euros.

Looking ahead, TUI said it is sticking to its "very positive assessment regarding the outlook for the TUI group."

Underlying profit "is expected to grow year-on-year for the full year" by between six and 12 percent and sales would expand by 2.0-4.0 percent, it said.

"Against the background of the improved business performance of the sectors, we are very confident to fully reach our earnings targets for the full year," CEO Joussen said.

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http://www.globalpost.com/dispatch/news/afp/140516/german-tourism-giant-tui-narrows-loss-q2