Lufthansa is an interesting stock with shares following an upward trend over the last quarter.
Shares on Lufthansa have gone from 11.3346 at the end of October to 14.3150 today due to the usual seasonal patterns of holiday sales but also due to other factors, including low fuel prices, a figure of 1 billion euros operating profit estimate for the year, and future proofing its IT with IBM cloud technology.
The Lufthansa Group has global aviation operations with a total of almost 500 subsidiaries and associated companies. The five business segments include Passenger Airline Group, Logistics, MRO, Catering and IT Services. In 2013, the Lufthansa Group generated revenue of 30.0 billion euro and employed an average of 117,343 staff. This year, in the third quarter of 2014 for January to September the Group posted profits of 849 million euro and the confirmation of a projected full-year operating profit of 1 billion euro. Lufthansa state the reasons for such high expectations:
· Substantial progress in reducing costs
· Service companies report encouraging results
· Group’s member airlines’ sales and distribution structures to be harmonized
· Economic slowdown affects 2015 profit projections: operating profit for 2015 should be significant improvement on 2014
Recent investments have cost the company $1.25 billion last month for 7-year deal for IBM’s cloud service, and in mid-September Lufthansa agreed to order 25 new Airbus planes worth 2.5 billion euros ($3.24 billion) at list prices to replace older aircraft and cut fuel costs at two subsidiary airlines.
MT4 chart: Lufthansa
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