INVESTMENTS CUT LUFTHANSA CARGO OPERATING PROFIT
Lufthansa Cargo A.G. said operating profit fell 35.5 percent in fiscal year 1999, to $106.4 million marks ($49.5 million), compared with 165million marks for the year-earlier period.
The German cargo carrier blamed the decline on a weak international economy and extensive spending on infrastructure and staffing.
Revenue rose 5.9 percent to 4.07 billion marks ($1.89 billion), compared with 3.84 billion marks the previous year. Traffic revenue rose 6.3 percent to $4.03 billion marks ($1.87 billion).
Operating expenses increased 7.7 percent to 4.18 billion marks ($1.94 billion). Expenses included:
* 528.7 million marks ($245.8 million) for three new MD-11 freighters and down payments on an additional six freighters, slated to go into service in 2001.
* 53.3 million marks ($24.8 million) for modernization of Lufthansa Cargo’s information technology.
* A 3.9-percent expansion of the company’s staffing.
The company said it will continue its “evolution into an integrated logistics services provider” in fiscal 2000. Lufthansa Cargo expects to expand its time-definite services network to 200 locations during the first quarter of the new fiscal year.