Visitors Now:
Total Visits:
Total Stories:
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

IAG flies to top of FTSE 100 despite sterling weakness

Friday, October 28, 2016 2:25
% of readers think this story is Fact. Add your two cents.

(Before It's News)

British Airways owner IAG (LON:IAG) flew to the top of FTSE 100 as it’s third quarter was impacted by the weak pound but it improved its after tax profit in the three months.

The weakness in sterling cost the group €162m (£145mln) in the quarter of the year and operating profits fell 4%.

Willie Walsh, chief executive, said it had been a  tough operating environment but noted that the group’s unit revenue performance was better than in the second quarter and  quarterly profit after tax was €970 million before exceptional items – an improvement of 9.9% compared to last year.

The interim dividend was increased 10% at 11 euro cents per share.

City broker Liberum rates shares a ‘hold’.

It said the September quarter were “in line with our forecasts and consensus”.

Operating profit was lower YoY (year-on-year), despite a full contribution from Aer Lingus  and a lower fuel bill, it noes.

“Currency was a material headwind in the period, with a net adverse impact on operating profit of €162m. We believe the bulk of this was related to the translation of sterling profits at British Airways.”

On the broker’s estimates, IAG trades on a price -to-earnings ratio of 5.4 times’ on 2016 estimates, rising to 6.2 for 2017.

“These multiples are a material discount to the group’s historic trading range and its European network carrier peers,” it says.

“We struggle to see how a discount valuation is justified.”

Story by ProactiveInvestors



Source: http://www.proactiveinvestors.com/companies/news/168203/iag-flies-to-top-of-ftse-100-despite-sterling-weakness-168203.html

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.