Bloomberg News

Flughafen Wien Falls on Skylink Terminal, Slovakia Charges

November 20, 2011

(Closes shares in final paragraph.)

Nov. 18 (Bloomberg) -- Flughafen Wien AG, the operator of Vienna International Airport, fell the most in more than two months after saying nine-month profit declined because of writedowns on a new terminal and its Slovak airport.

Net income fell to 20 million euros ($27 million) from 72.2 million euros a year earlier, Flughafen said in a statement today. Net income was 43.3 million euros in the first six months of the year, implying Flughafen made a third-quarter loss, according to Bloomberg calculations. The company will report full results as scheduled Nov. 24, it said.

The company said that “deficient performance by contractors and unjustified increases in cost” at its new Skylink terminal in Vienna led to impairment charges of 29 million euros.

Traffic growth at the Kosice, Slovakia terminal “will fall substantially below earlier expectations,” Flughafen said. It wrote down the value of that investment by 21 million euros.

The shares fell 3.3 percent, the most since Sept. 6, to 30.46 euros at the 5:30 p.m. close of trading in Vienna.

--Editors: Jerrold Colten, Thomas Mulier

To contact the reporter on this story: Boris Groendahl in Vienna at bgroendahl@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net


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