Tag: Air Transport

DHL signs MoU with Shanghai Airport Authority, plans north Asia hub

Posted by | Jul 28, 2006 | |

DHL said it has signed a memorandum of understanding with the Shanghai Airport Authority to explore building a north Asia hub in the city.

The two parties have yet to reach a final agreement, and discussions are likely to continue for the next few months, a DHL spokesperson said.

‘DHL’s signing of the MoU with the Shanghai Airport Authority is an indication of DHL’s interest in building a hub in Shanghai. We have not reached a final agreement,’ the spokesperson said.

DHL aims to have a north Asia hub operating by 2009.

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ABX Air wins USPS deals to compensate DHL decline

Posted by | Jul 27, 2006 | |

ABX Air, Inc. announced today that its subsidiary, ABX Cargo Services, has been awarded the contract to manage the U.S. Postal Service’s terminal handling services at its Surface Transfer Center (STC) in Dallas, Texas.
The contract calls for ABX to be compensated at a firm price for its fixed costs, plus an additional amount based on the volume of mail handled. Based on projected volumes, ABX Air anticipates that its revenues under the contract could total about USD 20 million during the four-year term of the contract. This contract provides for two, two-year extensions at the discretion of the U.S. Postal Service.

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DHL, Lufthansa Cargo in strategic security partnership

Posted by | Jul 25, 2006 | |

DHL Global Forwarding and Lufthansa Cargo announced that they have signed a strategic air-cargo security partnership agreement.

The companies said the partnership will develop standard operating procedures that support customer and governmental security requirements. They said the procedures will improve safety for employees who handle high-value and high-risk products, and make DHL a more attractive forwarder for customers shipping high-value or sensitive goods.

Tony Widmer, head of airfreight for DHL Global Forwarding, said the hoped the partnership would attract more air carriers and boost freight volume.

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Forward Air Corporation Reports Record Second Quarter 2006 Results; 12.0% Revenue Growth; 22.8% Operating Margin; 10.8% EPS Growth

Posted by | Jul 24, 2006 | |

Operating revenue for the quarter ended June 30, 2006 increased 12.0% to a record $86.8 million from $77.5 million for the same quarter in 2005. Income from operations was $19.8 million, compared with $16.8 million in the prior-year quarter, an increase of 17.7%. As a percent of operating revenue, income from operations improved to 22.8% from 21.7% for the same quarter last year. Net income during the period increased by $1.1 million, or 8.9%, to $13.0 million from $12.0 million in the prior-year quarter. Diluted income per share from operations for the second quarter of 2006 was $0.41 compared with $0.37 in the prior-year quarter, an increase of 10.8%. The second quarter of 2005 included a one-time gain of $0.9 million after-tax income, or $0.03 per diluted share, from the Company’s settlement of its lawsuit with the City of Atlanta.

Operating revenue for the six months ended June 30, 2006 increased 15.0% to $169.1 million from $147.0 million for the same period in 2005. Income from operations was $36.7 million, compared with $30.2 million in the prior-year period, an increase of 21.7%. As a percent of operating revenue, income from operations expanded to 21.7% for the first six months of 2006 from 20.5% in 2005. Net income during the period increased 16.4% to $24.0 million from $20.6 million in the prior-year period. Diluted income per share from operations for the first six months of 2006 was $0.75 compared with $0.63 in the prior-year period, an increase of 19.0%.

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Pullback Offers Attractive Entry Point

Posted by | Jul 20, 2006 | |

Attractive entry point on the back of market pullback. Although up 5% from the recent trough, TNT shares are down 9% since the beginning of May, in line with our European Logistics stock coverage universe average. We maintain our Outperform on the back of positive fundamentals and believe current share price weakness offers an attractive entry point with 24% upside potential to our price target.
Logistics disposal to serve as next likely key catalyst. Disposal of the Logistics division (ex freight forwarding) is expected before year-end at a price that at least matches book value of €1.2bn ($1.51bn) per TNT guidance. Successful disposal would (1) improve the group’s growth and returns profile and (2) trigger a sizeable share repurchase (estimated 9%-11%, dependent on takeout price).
Long-term focus on Express development. Ex Logistics, the Express division is set to play an even more pronounced role as the group’s growth driver. Besides the successful disposal of Logistics, emergence of accelerating top-line Express growth, in line with medium-term 10%-15% guidance (vs. ~10% guidance for 2006), could serve as a key fundamental catalyst in 2H:06.
Earnings ex logistics unchanged; updating ‘all-in’ estimates. Ex Logistics, we expect EPS of €1.89 ($2.38) and €2.13 ($2.68) in 2006/07 (no change) with our €35 ($42) target price implying a target P/E multiple of 13.8x (2007E) vs. current 11.1x. Due to an update of our Logistics valuation and treatment for discontinued depreciation, our ‘all-in’ estimates (inclusive of Logistics) are rising by 4% (down 4% underlying).
Risks to our bullish thesis. Key risks relate to (1) successful disposal of a large Logistics asset, (2) a major economic slowdown (to which Express would be highly geared), (3) Mail regulatory risk (4) a remaining, albeit small, gov equity stake overhang (10%) and (5) potential suitors interested in Express may choose other means of developing a greater presence in Europe.

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