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rajiv's review
Investment Sector: Commodities Submitted by Rajiv 
, An Investor...
at Bank Of Baroda....migrating to USA
about 1 month ago Add Tag |
My predictions coming true.........
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Friends,
I have written very categorically that this crude speculation will burn many pockets and that is seen in the below news....
I was hearing Fed Chief , Ben Bernanke that he does not think crude is going up on Speculations.I was surprised to hear that.
But to makeup the loss in housing mortgage , US is playing with commodities and that seems to be the biggest blunder by USA as playing in commodities will make the whole wrold in deep recession which will even be wrose then 1929 depression.....
Because the crude and commodities rally will take the steam off from their companies as well, like Airlines.....which I already wrote in my past post.....So Fin Insti gains will make other companies poorer and that will have even more bad effect in US economy....and world over.......
The Billions dollar loss of Delta per quater and AMR making a $1.4 billions which was $317 mn profit and Delta made a profit of $137 mn are making loss of over$1 bn is in itself the testimony that the course taken for making up the loss by Fin Insti for sun prime mortagage is not worth walking on....
Rajiv
AMR, Delta unveil billion-dollar Q2 losses
<!----> <!---->SOARING jet fuel prices, as expected, are taking a toll on the US airline industry, with the first two companies to report second quarter results posting billion dollar losses, though after charges. While AMR — parent of American Airlines — posted a loss, including special charges, amounting to $1.4 billion, Delta reported a $1 billion quarterly loss after special charges.
<!----> <!---->However, excluding special charges, Delta said it earned $137 million, or 35 cents per share. The airline, which has agreed to buy Northwest Airlines, said the special charges were mainly for the impairment of goodwill, emerged from bankruptcy at the end of April 2007. Delta expects to end the year with liquidity of $3.2 billion, including $1 billion under a revolving credit facility.
<!----> <!---->AMR, which posted a profit of $317 million, or $1.08 per share, a year earlier, took a severe beating as its fuel bill jumped 47.4%. AMR paid $2.42 billion for fuel in the quarter, up from $1.64 billion a year earlier.
<!----> <!---->Excluding onetime items, the parent of the No 1 US airline said its loss was $248 million, or $1.13 per share. That compares with Wall Street expectations for a $1.42-pershare loss, according to Reuters Estimates. Items include a $1.1 billion noncash accounting charge to write down the value of certain aircraft to their estimated fair value. Other charges related to capacity reductions.
Its revenue rose 5.1% to $6.18 billion and it ended the quarter with $5.5 billion in cash and shortterm investments, including a restricted balance of $435 million. Shares of AMR fell 45% in the second quarter.
<!----> <!---->AMR’s loss sets the stage for what could be a troubling string of reports from rival carriers. Top carriers, including AMR’s American, have announced sweeping capacity cuts to offset fuel costs. Delta, on the other hand, said it expects its capacity for the second half of 2008 to be down 4% compared to 2007, with domestic capacity down 13% and international up 14%. The company plans to remove the equivalent of 100 regional aircraft by the end of the year.
<!----> <!---->US airlines have announced big cutbacks as they grapple with unprecedented oil prices, which have doubled in the past year. The carriers have been forced to raise fares, introduce fees, cut services, jobs and capacity and target more lucrative international routes. In March, Delta unveiled plans to cut 2,000 jobs, offering voluntary retirement and “early out” programs, but in June said more than 4,000 employees chose to take part in the programs.
<!----> <!---->Delta said on Wednesday its merger with Northwest Airlines is targeted to close during the fourth quarter of 2008 and that it has reached a pre-merger joint bargaining agreement between the Delta and Northwest units of the Air Line Pilots Association.
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