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Fraport AG (FRG)

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Wednesday 27 May, 2009

Fraport AG

Fraport Annual General Meeting: Fraport Shareho...





FRANKFURT am MAIN, Germany, May 27 /PRNewswire/ --

- Cautious Outlook for 2009 - Sustainable Recovery Trend Expected in 2010

    At the regular annual general meeting for shareholders in
Frankfurt-Hoechst today, Fraport executive board chairman Prof. Dr. Wilhelm
Bender announced that "in 2008 we reached our goals for key financial
indicators despite all the difficulties resulting from the beginning
worldwide economic crisis" - even though the Fraport Group's revenue declined
by 9.8 percent to EUR2.1 billion, due to the divestiture of the wholly-owned
ICTS Europe security subsidiary. However, Group earnings before interest,
taxes, depreciation and amortization (EBITDA), or operating results, reached
a new record level of EUR600.7 million, up 3.5 percent year-on-year.
Primarily because of higher interest expenditures, Group profits slipped
below the 2007 figure to EUR180.2 million, as already announced. The
executive and supervisory boards are recommending that shareholders receive a
dividend of EUR1.15 per share again for the 2008 fiscal year - the third
consecutive year for this high dividend payout. The dividend yield is rising
by 3.7 percent to 2.1 percent year-on-year.



    Bender is convinced that "following the current economic slump
the global aviation industry will return to its long-term
growth path." Over the past decades, a consistent pattern has
emerged following crises situations: from the oil crises of the 70s and 80s
to the Gulf and Iraq wars, to the terrorist attacks on September 11, 2001;
crisis-related traffic declines are always followed by an over-proportionate
recovery phase. "Every time, the air transportation industry has reemerged
strongly on its globally oriented long-term growth path," said Bender. No one
doubts that globalization and internationalization of the division of labor
will further intensify in the coming years. "That's why the world economy
needs an efficient global air transportation industry that links the numerous
growth centers of the world together."



    Therefore, Fraport's CEO described the launch of Frankfurt
Airport's capacity expansion in early 2009 as absolutely indispensable,
despite the temporary decline in traffic figures. "For several years now,
FRA's capacity constraints have been limiting our development and endangering
the long-term economic perspectives of the Frankfurt/Rhine-Main region," said
Bender. Without this sustainable capacity expansion, Fraport would be
threatened by a loss of vital market share when the expected economic
recovery occurs.



    Frankfurt Airport's expansion in the coming years, with an
investment volume of about EUR7 billion from 2007 through 2015, is one of the
largest investment projects in Europe. Especially during these currently
difficult economic times, Fraport's privately financed program will have a
significant positive impact on the economic development of the
Frankfurt/Rhine-Main region and far beyond. Many thousands of jobs will be
secured and approximately 100,000 new jobs created.



    In view of this year's economic situation, it is extremely
difficult to provide an outlook for Fraport's expected business development
in 2009, explained Bender: "Already the first quarter was anything but
satisfying, with declining traffic figures. But compared to other MDAX and
DAX listed companies, Fraport at least continued to operate clearly in the
black." With only a slight decline in the adjusted Group revenue of 1.5
percent due to consolidation effects, the EBITDA from January to March 2009
almost reached EUR100 million and the first-quarter Group profit still hit
EUR22.3 million.



    Frankfurt Airport, in Bender's words, will not be able to
escape developments in global aviation and the world economy. Fraport is
expecting a six to nine percent drop in passenger traffic at FRA during 2009.
Cargo will experience an even sharper decline. Fraport believes that a
sustainable recovery trend will take firm hold in 2010 - which will bring
about worldwide growth in air traffic figures again.



    Revenue in fiscal 2009 will drop below the 2008 figure - also
because of the absence of ICTS sales recorded in the first quarter of 2008
and full-year 2008 sales reported for Frankfurt-Hahn Airport. Bender said:
"We expect Group EBITDA to reach between EUR500 and EUR530 million. As
already forecast at the beginning of the year, Group profits will also be
below the 2008 figure."



    Print-quality photos of Frankfurt Airport and Fraport AG are
available free for downloading via the Internet at http://www.fraport.com
(Menu: select Press Center > then Photo Service). For TV news and information
broadcasting purposes only, we also offer free footage material for
downloading via http://fraport.cms-gomex.com.



    
    For Further information, Please Contact:
    Fraport AG Frankfurt Airport Services Worldwide
    Robert A. Payne, B.A.A. - Manager International Press
    Press Office (Dept. UKM-PS), Corporate Communications (UKM)
    60547 Frankfurt am Main, Federal Republic of Germany
    Tel.: +49-69-690-78547; Fax: +49-69-690-60548;
    E-mail: [email protected]; Internet: http://www.fraport.com





                                                                                                

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