Fraport affirms 2007 targets, expects FY revenues to surpass 2006 level UPDATE

Fraport affirms 2007 targets, expects FY revenues to surpass 2006 level UPDATE

	Published : Wed, 30 May 2007 10:46 By : Agencies Print this Story

(updating to add reason for expected growth, CEO comments on passenger numbers)

FRANKFURT (Thomson Financial) - Fraport AG affirmed that it expects to achieve higher 2007 full year revenues than in the previous year due to stronger retail operations and growing business outside of Frankfurt.

'The signs for Fraport's continuing success remain unchanged,' chief executive Wilhelm Bender said at the company's annual general meeting.

Operating results are expected to meet or slightly exceed last year's level excluding special effects that occurred in 2006, he said.

At the Frankfurt airport, Fraport expects passenger numbers to increase by 1-2 pct in the full year after 3.8 pct through April, Bender said.

On a group level, passenger numbers are forecast to increase stronger than in Frankfurt, he added.

Regarding the planned expansion of the Frankfurt airport, Bender stressed that an international hub like Frankfurt must have sufficient capacity reserves available to secure its top position in the future.

'We risk falling behind in the increasing broader and ongoing redistribution of global air traffic flows because no one around the world even takes into consideration the fact that in Germany we require a lead time of more than ten years for urgently needed infrastructure investments,' Bender criticised.

He added that, following foreseeable legal proceedings and a two-year construction phase, the planned new landing is expected to be inaugurated between the end of 2010 and autumn 2011.

Bender said that Fraport's 670 mln eur acquisition of the plant infrastructure and properties of Ticona GmbH, adjacent to the planned new runway, are 'advantageous'.

If they had not bought Ticona the expansion of Frankfurt airport would have been delayed by six years, Bender explained.

Regarding Fraport's recent acquisition of a 24.5 pct stake in China's Xi'an airport, Bender said this is only a 'first step'.

Fraport is planning to expand its activities in China, the CEO said.

The MDAX-listed company achieved full year net profit of 228.9 mln eur and is proposing a 2006 dividend of 1.15 eur per share to its shareholders after 0.90 eur per share a year earlier.

judith.csaba@thomson.com

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