Fri, Jul 18, 2003
...but You Gotta Read the Whole Report
Northwest Airlines Corporation, the parent of
Northwest Airlines, reported a second quarter net profit of $227
million or $2.45 per diluted common share. This compares to a
second quarter 2002 net loss of $93 million or $1.08 per common
share.
Northwest's second quarter 2003 results included $387 million of
unusual items:
- A $209 million reimbursement of security fees received from the
U.S. government under the Emergency Wartime Supplemental
Appropriations Act;
- A $199 million gain resulting from the sale of Northwest's
interest in Worldspan; and
- A $21 million charge related to the write-down of certain
aircraft.
- Excluding these unusual items, Northwest reported a second
quarter 2003 net loss of $160 million or $1.86 per common
share.
"Second quarter results were impacted by the war in Iraq and
SARS (Severe Acute Respiratory Syndrome). Moreover, we are still
not seeing meaningful improvement in the underlying financial
performance of the airline," said Richard Anderson, chief executive
officer.
"Excluding the unusual gains resulting from the sale of our
Worldspan investment and the one-time federal reimbursement
received under the Wartime Act, Northwest's $160 million loss was
its worst second quarter performance in company history," Anderson
continued.
Anderson added, "While we aggressively reduced capacity and
parked aircraft in response to the Iraq war and SARS, the revenue
environment, at best, is showing marginal improvement. Clearly,
with losses of the magnitude that we are experiencing, our top
priority remains to bring the company's costs in line with our new
level of revenues. We continue to work with our labor union leaders
and our suppliers to address our cost of operation, as Northwest
must align its cost structure with its revenue expectations and
with those of our major competitors."
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