Friday, 4 November 2011 at 10:18, Reuters
Atlas Air net income was $28.2 million for the third quarter, down 17 per cent from previous year. (REUTERS)
Cargo carrier Atlas Air Worldwide Holdings Inc said on Thursday quarterly profit fell as demand in Asia softened and fuel expenses rose, and the company cut its full-year forecast, sending its shares down more than 6 per cent.
"There is weakness that's obviously come into the (freight) market over the last quarter or so," said Jason Ursaner, an analyst with CJS Securities. He added that while the quarterly results disappointed, the fundamentals of Atlas Air were "still pretty positive."
The provider of charter freight services to commercial airlines and the US military said net income was $28.2 million, or $1.07 a share, for the third quarter, down 17 per cent from $33.8m, or $1.29 a share, a year earlier.
Analysts had expected $1.35 a share, according to Thomson Reuters I/B/E/S.
Revenue rose 11 per cent to $362.9m, compared with $375.5m expected by analysts.
Atlas Air said it now expects full-year profit in excess of $4.30 a share, compared with an August view of $5 a share. It cited expected lower contribution from commercial charter operations, delivery delays for Boeing Co 747-8 freighter planes, lower-than=expected flying tied to Boeing 787 program adjustments and start-up costs for new business opportunities.
Shares of Atlas Air were down 6.5 per cent, or $2.51, to $36.00 in morning trading.
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