$LHA (+0,69%) I've been carrying around -46% in my portfolio since Covid. Realize loss of book value?

Lufthansa: $LHA (+0,69%)

- Q1 revenue: €8.13bn (expected: €8.04bn)

- Q1 adj. EBIT: € -722 million (expected: € -718 million)

- Passenger airlines weaker than expected.

- Forecast 2025 confirmed: Significantly higher adj. EBIT than 2024.

- Task force for rapid capacity adjustment in the event of weaker demand.

- North American traffic strong in Q1 (+25% US passengers in March).

HelloFresh: $HFG (-0,34%)

- Q1 revenue: € 1.93 billion (-7%), adjusted EBITDA: € 58.1 million (+250%).

- Efficiency program bears fruit.

- 2025 forecast confirmed: Sales -3% to -8%, EBITDA € 450-500 million.

Novartis: $NOVN (+0,38%)

- Q1 net profit: USD 3.6 bn (+33%).

- Forecast raised: Sales growth now expected in the high single-digit percentage range.

Mutares: $MUX (-1,63%)

- Q1 revenue: €1.53bn (+13%), net result holding company: €29.5m.

- Exits planned for 2025 (>€200m gross proceeds expected).

- Partial sale of Steyr Motors generates € 74m.

Symrise: $SY1 (-6,23%)

- Q1 organic growth: 4.2%, sales: € 1.32 bn.

- Full-year forecast confirmed: 5-7% organic growth, EBITDA margin ~21%.

DWS Group: $DWS (-0,15%)

- Q1 revenues: €753m (+3%), net income: €199m (+13%).

- Record inflows: € 19.9 billion.

- Cooperation with Deutsche Bank in the Private Credit segment.

Deutsche Bank: $DBK (-3,59%)

- Q1 pre-tax profit +39%, highest quarterly profit in 14 years.

- Revenue growth and cost reductions drive earnings above expectations.

Lufthansa starts the year with another high loss + Hellofresh suffers from sluggish demand for cooking boxes at the start of the year + Symrise on course for annual targets

Lufthansa $LHA (+0,69%)starts the year with another high loss

• Despite significantly higher revenues, Lufthansa has once again started the year with figures in the deep red.
• While several strikes had had an expensive impact in the previous year, operating costs rose noticeably in the first quarter.
• In addition, Easter only fell in the second quarter this time.
• However, despite the customs dispute with the USA, the Group counted significantly more travelers from the United States in March than a year earlier, as it announced in Frankfurt on Tuesday.
• Bookings from the USA continued to increase.
• This is another reason why CEO Carsten Spohr is sticking to his goal of increasing profits in day-to-day business (adjusted EBIT) in the current year and "significantly" exceeding the previous year's figure of around 1.65 billion euros.
• In the first quarter, the Group's turnover rose by ten percent year-on-year to 8.1 billion euros.
• The operating loss adjusted for special items (adjusted EBIT) decreased by 15 percent to 722 million euros.
• In the passenger business, however, the loss widened to 934 million euros.
• At the bottom line, the Group's loss increased by more than a fifth to 885 million euros due to lower tax relief.

Hellofresh $HFG (-0,34%)suffers from sluggish demand for cooking boxes at the start of the year

• Hellofresh suffered a decline in sales at the start of the year due to the continued sluggish business with cooking boxes.
• Revenues in the first quarter fell by around seven percent year-on-year to 1.93 billion euros, as the Berlin-based MDax company announced on Tuesday.
• In mid-March, the management had already predicted a difficult first quarter.
• While sales of cooking boxes shrank by 13.5 percent, the ready meals division grew by 10.5 percent.
• Hellofresh confirmed its forecast for the year.
• Adjusted for special effects, earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) soared by around 250 percent to 58.1 million euros due to the ongoing savings program.
• Savings in personnel costs and production were particularly noticeable in the cooking box business.
• Meanwhile, the growing ready meals business is still making an operating loss.
• The bottom line for shareholders was a loss of 123.8 million euros after 83.9 million in the same quarter of the previous year.
• Hellofresh continues to expect a decline in sales of three to eight percent in the current year.
• The adjusted operating profit is expected to be between 450 and 500 million euros and thus at least reach the level of two years ago.
• Back in March, the food delivery company announced a savings program: from 2026, a total of 300 million euros are to be saved annually.

Symrise $SY1 (-6,23%)on course for annual targets

• Despite a slower start to the year, Symrise believes it is on track to achieve its annual targets.
• Sales in the first quarter rose by just under two percent year-on-year to around 1.32 billion euros, as the manufacturer of fragrances, flavors and food additives announced on Tuesday.
• Excluding exchange rate effects as well as acquisitions and disposals of parts of the company, the increase amounted to 4.2 percent.
• Business with additives for beverages and sweets as well as fragrances for expensive perfumes provided a tailwind, while the sunscreen business was slower due to very strong figures from the previous year.
• Group sales were roughly in line with market expectations, while organic growth was slightly higher.
• The company confirmed its annual targets.
• Accordingly, organic growth should continue to reach 5% to 7% in 2025.
• Earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to account for around 21% of sales, which would continue the margin recovery of the previous year.
• Symrise will comment specifically on the profit trend when it publishes its half-year figures.

Tuesday: Stock market dates, economic data, quarterly figures

Japan stock exchange holiday

• ex-dividend of individual stocks
• Henkel VZ EUR 1.85
• Banco Santander EUR 0.11
• Henkel 2.02 EUR
• Vivendi 0.04 EUR
• Akzo Nobel EUR 1.54
• Inditex 0.84 EUR
• Signify 1.56 EUR

• Quarterly figures / company dates USA / Asia
• 12:00 Spotify | UPS quarterly figures
• 12:30 General Motors | Honeywell quarterly figures
• 12:45 Pfizer quarterly figures | Astrazeneca analyst conference
• 13:00 Coca-Cola | Kraft Heinz quarterly figures
• 13:15 Paypal quarterly figures
• 15:00 Citigroup | American Express AGM
• 19:00 IBM AGM
• 20:00 Meta AGM
• 22:00 Booking Holdings | Starbucks | Edison International | First Solar | Snap quarterly figures
• 22:05 Visa | Mondelez quarterly figures
• Without time information: Paccar | Universal Music | Corning | Jetblue Airways Quarterly figures

• Quarterly figures / Company dates Europe
• 07:00 Deutsche Bank | Lufthansa | Novartis | DWS | Hellofresh | HSBC
• 07:00 Banco Bilbao | Stratec | Capgemini | Volvo Car annual results
• 07:30 Adidas | Symrise | Mutares quarterly figures
• 08:00 Porsche AG | Astrazeneca | BP | AB Foods quarterly figures | Deutsche Bank PK
• 08:30 Hellofresh analyst and press conference
• 09:00 Flatexdegiro PK on the 1Q figures | Porsche AG PK
• 09:30 DWS | Banco Bilbao Analyst Conference
• 10:00 Lufthansa | Adidas PK
• 10:30 Hochtief AGM
• 11:00 Deutsche Bank | Symrise Analyst Conference
• 11:30 Lufthansa Analyst Conference
• 14:00 Novartis | BP Analyst Conference
• 14:00 Deutsche Börse Analyst and Investor Conference 1Q
• 15:00 Adidas Analyst Conference
• 18:00 ASM International quarterly figures
• 19:00 Telekom Austria quarterly figures
• 22:00 Logitech quarterly figures

• Economic data

08:00 DE: GfK Consumer Climate Indicator May FORECAST: -26.0 points previously: -24.5 points

09:00 DE: ECB Director Cipollone, speech on "Financial and trade fragmentation: risks and policy alternatives"

09:00 ES: GDP (1st release) 1Q FORECAST: +0.6% yoy/+3.1% yoy 4th quarter: +0.8% yoy/+3.4% yoy

09:00 ES: HICP and consumer prices (preliminary) April HICP FORECAST: +2.0% yoy previously: +2.2% yoy

09:40 DE: ECB Banking Supervisor Donnery, speech on the ECB's supervisory priorities for 2025

10:00 EU: ECB, M3 money supply and lending March M3 money supply FORECAST: +4.0% yoy previous: +4.0% yoy | ECB publication of consumer survey results

11:00 EU: Economic Sentiment Index April Eurozone Economic Sentiment Forecast: 94.5 Previous: 95.2 Eurozone Industrial Confidence Forecast: -10.3 Previous: -10.6 Eurozone Consumer Confidence Forecast: -16.7 Previous: -16.7 Previous: -14.5

11:00 EU: Eurozone Business Climate Index April

16:00 US: Consumer Confidence Index April FORECAST: 87.7 previous: 92.9

In July and August 2024, I bought Lufthansa shares because I had identified a bottom (the first tranche was at €6). After a rollercoaster ride in which the position was up over 40% at times, it is now almost back to plus minus 0. What has happened since then?

Positive developments

Lufthansa has 7.8 billion euros on kerosene in 2024 spent on kerosene. This makes kerosene the second largest cost item for Lufthansa, directly after personnel costs. In comparison: revenue amounted to 37 billion euros in 2024. Good news for Lufthansa is therefore that the oil price (on which the kerosene price also depends) has been on a downward trend since 2022 and has already fallen by more than 50% from its last peak.

Lufthansa is gradually taking over ITA Airways, strengthening its presence in the southern European market.

Due to Corona, the number of vacations in Germany has fallen significantly, but is well on the way to returning to pre-Corona levels.

And another little nice to know, surprisingly for me, there are still no declines in USA bookings despite the new US entry policy.

Negative developments

Since the Russia - Ukraine war Lufthansa no longer flies over Russia. A flight ticket is estimated to be 5-10 percent more expensive and the flight takes about 2 hours longer. Chinese airlines can fly via Russia and are competing strongly with Lufthansa's Asian business. In general, Lufthansa is in an intense price war, especially with low-cost airlines. intense price warwhich is putting pressure on margins.

Due to the tariff war will result in less trade between China, the USA and the EU in future, which means that Lufthansa will transport fewer goods. Lufthansa Cargo accounts for 10% of revenue. However, I do not expect any major losses here.

Lufthansa wants to cut jobs and reduce costs, among other things by transferring flights to cheaper subsidiaries such as City Airlines. This leads to a conflict of interest with VC (Vereinigung Cockpit), as experienced Lufthansa pilots are to be replaced by cheaper staff. VC is therefore repeatedly threatening to strike. However, VC must also pay attention to its image. I think large-scale strikes are very unlikely, but strike threats or 1-2 day warning strikes are possible. A one to two-day strike would cost Lufthansa around 100 million in revenue plus a loss of passenger confidence, depending on the extent, but even then I would expect a short-term drop in shares of a maximum of 5%.

Lufthansa is currently modernizing its long-haul fleet with new, more efficient aircraft, which is positive for the time being. At Airbus, but especially at Boeing, however, there are often supply chain problems. For example, Lufthansa ordered 20 Boeing 777-9s in 2013, which were due to be delivered in 2020. It is now clear that they cannot be delivered until 2026 at the earliest.

With a P/E ratio of 5.4, Lufthansa is a bargain. There are some risks, but they are manageable. Unlike many other companies, which have also fallen sharply in recent days, I don't think they will be hit too hard by the tariffs and could therefore recover quickly.

Sources

https://www.reuters.com/business/aerospace-defense/chinese-airline-competition-lowering-lufthansas-asia-profits-executive-says-2025-04-04/?

https://www.reuters.com/business/aerospace-defense/pilots-union-breaks-off-talks-over-lufthansas-cuts-plans-sources-say-2025-04-02/?

https://www.reuters.com/business/aerospace-defense/all-flights-into-europe-must-avoid-russia-fair-competition-lufthansa-says-2024-10-16/?

https://www.reuters.com/business/aerospace-defense/lufthansa-says-no-decline-us-bookings-despite-stricter-border-policy-2025-04-01/?

https://www.businessinsider.com/boeing-777x-first-delivery-lufthansa-delays-kelly-ortberg-2025-1?

https://de.statista.com/statistik/daten/studie/151947/umfrage/anzahl-der-urlaubsreisen-in-deutschland-seit-2005/

Lufthansa $LHA (+0,69%) is facing a challenge: a ruling by the Cologne Regional Court has decided that the airline may no longer use certain CO₂ statements in its advertising. Deutsche Umwelthilfe has won an important victory in this case and the court has upheld the claim in full. Although the ruling is not yet final, the impact on Lufthansa's marketing strategies could be significant. Especially at a time when sustainability is becoming increasingly important to travelers, this could fundamentally change the way the airline presents its environmentally friendly offers and force it to find more creative approaches to appeal to its customers.

In Germany, the DAX $LYY7 (-0,63%) is relatively stable on Tuesday. The leading German index is expected to rise slightly by 0.1 percent to around 22,874 points before the start of trading. Investors seem to be looking for a clear direction, while the Asian markets are developing unevenly. The Nikkei 225 in Tokyo is up 0.46 percent, while the Shanghai Composite is down 0.10 percent and the Hang Seng in Hong Kong is even down 2.25 percent. Market participants are keeping a close eye on current developments and are waiting for further impetus to make their decisions. It remains to be seen whether the markets will stabilize in the coming days or whether we will see further movements.

It will be exciting in the evening when GameStop $GME opens its books and presents its key figures for the past quarter. Analysts have high expectations for the figures, which could draw investors' attention to the share. Developments surrounding GameStop are always a hot topic and could also influence the general market situation. In other news, Hyundai is causing a stir with the announcement of a 21 billion dollar investment in the US, which could bring additional movement to the markets. At the same time, Heidelberg Materials and Jenoptik have announced that they will increase their dividends, which is a positive signal for investors and boosts confidence in the companies.

Sources:

https://www.spiegel.de/wirtschaft/lufthansa-gericht-verbietet-bestimmte-co-aussagen-in-werbung-a-b56dd3de-cccc-46ba-9ec3-b4d8e27ae0e4

https://www.finanzen.net/nachricht/aktien/10-vor-9-die-wichtigsten-10-fakten-fuer-anleger-am-dienstag-gamestop-vor-bilanzvorlage-14320872

Barclays turns Lufthansa from 'Overweight' to 'Underweight' + PUMA announces its outlook for 2025 + Rheinmetall targets further strong growth in the defense boom + VW subsidiary Porsche cuts medium-term forecast

Barclays downgrades Lufthansa $LHA (+0,69%)from 'Overweight' to 'Underweight'

• The British investment bank Barclays has lowered its rating for Lufthansa shares by two notches from "Overweight" to "Underweight" and cut its target price from 10.50 to 6.50 euros.
• "We fear that the golden goose has been cooked," wrote analyst Andrew Lobbenberg in his reassessment of European airlines on Wednesday with a view to the important North Atlantic business.
• The US airlines justified their recent profit warnings with the domestic business.
• However, Lobbenberg fears that this will have a wider impact.
• Weaker consumer and business sentiment will not leave unimpressed the wealthy customers who have supported the airlines with their demand over the past two years.

PUMA $PUM (+1,95%)announces its outlook for 2025

• For 2025, PUMA anticipates continued geopolitical tensions and economic challenges, particularly in terms of trade tensions and currency volatility.
• Against this backdrop, PUMA expects currency-adjusted sales growth in the low to mid single-digit percentage range.
• Due to the cost efficiency program nextlevel, PUMA expects one-time expenses of up to EUR 75 million in 2025.
• In return, the company expects to generate an additional EBIT of up to EUR 100 million in 2025 compared to 2024.
• The net contribution of the nextlevel cost efficiency program to EBIT in 2025 is expected to be up to EUR 25 million.
• To provide a reliable outlook on the underlying business development, the company publishes an outlook on adjusted EBIT for 2025 excluding one-time costs.
• PUMA expects adjusted EBIT for the financial year 2025 to be in the range of EUR 520 million to EUR 600 million (2024: EUR 622.0 million).
• Taking into account one-time expenses of up to EUR 75 million from the nextlevel program, EBIT in 2025 is expected to be between EUR 445 million and EUR 525 million (2024: EUR 622.0 million).
• For the first quarter, PUMA expects currency-adjusted sales growth in the low single-digit range below the previous year's level, mainly due to a weak business development in the US and China.
• Due to effects from the valuation of inventories in the previous year, a higher operating expense ratio and a different timing of marketing expenses, adjusted EBIT is expected to be around EUR 70 million.
• Including the one-off costs, EBIT in the first quarter is expected to be significantly below the previous year's level (Q1 2024: EUR 159.0 million).
• For the financial year 2024, the Management Board and the Supervisory Board of PUMA SE will propose a dividend distribution of EUR 0.61 to the Annual General Meeting on May 21, 2025, with consolidated net income of EUR 281.6 million and taking into account the share buyback of EUR 50 million.

Rheinmetall $RHM (+0,88%)aims for further strong growth in the armaments boom

• In view of rising defense budgets across Europe, Rheinmetall expects business to continue to shine in the current year.
• Sales are expected to increase by between 25 and 30 percent in 2025, as Germany's largest defense company announced in Düsseldorf on Wednesday.
• Last year, sales rose by 36 percent year-on-year to 9.75 billion euros.
• Rheinmetall had forecast around 10 billion euros.
• The operating margin rose to 15.2 percent in 2024 after 12.8 percent in the previous year.
• Rheinmetall is aiming for a slight increase to around 15.5 percent in the current year.
• Last year, the operating result soared by 61% to €1.48 billion compared to 2023.
• After Rheinmetall was once again able to land many new orders, the order backlog is higher than ever before.
• Shareholders are to receive a dividend of 8.10 euros per share for 2024, previously 5.70 euros were paid out.

VW subsidiary Porsche $P911 (-0,68%)cuts medium-term forecast but maintains dividend

• Sports car manufacturer Porsche AG is becoming more cautious due to the more difficult environment for the coming years.
• "In the long term, we are sticking to our fundamental ambition of a Group return on sales of more than 20 percent," said new CFO Jochen Breckner on Wednesday, according to a press release.
• "In the medium term, we are aiming for 15 to 17 percent due to the persistently challenging environment."
• Previously, the Stuttgart-based VW subsidiary had seen between 17 and 19 percent in this time horizon.
• Last year, the operating margin slipped from 18.0 to 14.1 percent because business in China in particular was weak.
• This year, as already announced, the margin is likely to be only 10 to 12 percent due to investments in new models and conversion costs.
• Sports car manufacturer Porsche AG intends to keep its dividend stable this year despite a slump in profits in the previous year and high investments.
• The Stuttgart-based VW subsidiary announced on Wednesday that it will pay 2.31 euros per Dax-listed preference share.

Wednesday: Stock market dates, economic data, quarterly figures

• ex-dividend of individual stocks
• Southwest Airlines USD 0.18
• HP 0.29 USD

• Quarterly figures / company dates USA / Asia
• 18:00 Starbucks AGM
• 21:05 Adobe quarterly figures

• Quarterly figures / Company dates Europe
• 07:00 Grand City Properties | Brenntag | Wacker Chemie | Klöckner & Co | ABN Amro Annual results
• 07:30 Porsche AG | Rheinmetall | Inditex Annual results
• 08:00 Puma annual result
• 09:00 Porsche AG PK | Klöckner & Co BI-PK
• 10:00 Puma | Rheinmetall | Wacker Chemie | Brenntag BI-PK
• 15:00 Puma Analyst Conference
• 16:00 Brenntag Analyst Conference
• No time specified: Mercedes-Benz Group Annual Report

• Economic data

09:45 DE: ECB President Lagarde, speech at conference "The ECB and it's Watchers XXV" (including Governing Council members Villeroy de Galhau 10:30, Escrica 13:00, Nagel 14:45 and Lane 16:15)

13:30 US: Real Income February

13:30 US: Consumer prices February PROGNOSE: +0.3% yoy/+2.9% yoy previous: +0.5% yoy/+3.0% yoy Core consumer prices PROGNOSE: +0.3% yoy/+3.2% yoy previous: +0.4% yoy/+3.3% yoy

14:45 CA: Bank of Canada, results of the Monetary Policy Council FORECAST: n/a previous: 3.00%

15:30 US: Crude oil inventory data (week) from the government Energy Information Administration (EIA) previous week

Lufthansa share falls due to strikeThe Lufthansa share $LHA (+0,69%) has experienced a noticeable drop in recent days, and for good reason. The trade union Verdi has announced a 24-hour warning strike at 13 German airports, which will take place on Monday, March 10. Over 500,000 passengers will be affected as numerous flights will be canceled. Air traffic will come to a virtual standstill, particularly at major hubs such as Frankfurt and Munich. As a result, the Lufthansa share temporarily fell by 1.93 percent to 7.83 euros. The possibility of up to 3,400 flights being canceled increases the pressure not only on the airline, but also on travelers who are dependent on their plans during this turbulent time.

Porsche with loss, but dividend remainsPorsche Automobil Holding SE has undergone a number of important developments in recent weeks. The impairment tests of its investments in Volkswagen and Porsche AG have been completed, and the news is not exactly rosy. A projected loss of around 20 billion euros is expected for the 2024 financial year. The impairment of the book value of the investment in Volkswagen amounts to 19.9 billion euros, and Porsche AG is also affected with 3.4 billion euros on the balance sheet. Despite these painful figures, Porsche SE is optimistic and plans to distribute a dividend. In XETRA trading, the Porsche share $P911 (-0,68%) rose by 5.01 percent to 57.88 Euro. This underlines the confidence in the long-term strategy of the company, which believes in the future despite the current challenges.

Sources:

https://www.finanzen.net/nachricht/aktien/flughafen-streiks-lufthansa-aktie-unter-druck-warnstreiks-an-flughaefen-was-reisenden-bevorsteht-14302412

https://www.finanzen.net/nachricht/aktien/wertberichtigung-porsche-aktie-dennoch-fester-porsche-holding-meldet-abermilliarden-nachsteuerverlust-und-zahlt-dividende-14301035

Carsten Spohr, CEO of the Lufthansa Group ($LHA (+0,69%) ) opened the conference with a description of 2024 as a year of ups and downs, with the core brand Lufthansa Airline due to labor disputes and infrastructure problems in Germany fell short of expectations due to labor disputes and infrastructure problems in Germany.

In contrast, the other airlines within the Group and Lufthansa Technik developed positively, with some even achieving new record results.

However, Spohr emphasized that a turnaround had been initiated, which had already led to significant improvements in the fourth quarter. Particular emphasis was placed on the successful acquisition of ITA Airways. In addition, operational stability had improved and investments in premium quality were increasingly paying off.

Nevertheless, Spohr acknowledged that an economic turnaround was urgently needed for Lufthansa Airline, as the majority of the Group's decline in profits was attributable to this brand. He mentioned a turnaround program that had been initiated and referred to the strong growth forecast for the global aviation industry. The Lufthansa Group's passenger airlines had benefited from this demand and had increased their capacity by 9%.

Revenue rose by 6% to 37.6 billion euros, a new record. Adjusted Group EBIT amounted to 1.6 billion euros. Spohr highlighted the results of SWISS, Eurowings, Brussels Airlines, Austrian Airlines and Lufthansa Technik as particularly positive, while Lufthansa Cargo reported a strong end to the year. He emphasized that the Group was in a position to achieve a result of 1.6 billion euros even without a contribution from the core airline, which would have been unthinkable a few years ago.

Spohr also explained the strategic capacity allocation, whereby the strong demand on the North Atlantic route was utilized and capacities were reduced due to competitive disadvantages in Far East traffic. Within Europe, the Lufthansa Group has expanded its leading position and benefited from its focus on the tourist travel segment. The Group also sees further potential in the southern hemisphere through the integration of ITA. Another important point is the improvement of the cost structure through the use of City Airlines and Discover Airlines, which offer a more competitive feed and de-feed system.

Till Streichert, CFO of the Lufthansa Group, then presented detailed financial figures. He spoke of revenue growth of 6%, which was, however, overshadowed by a 9% increase in operating costs. Despite lower fuel costs, material costs rose due to higher maintenance costs and fees. Personnel costs also rose due to collective wage agreements and an increase in the number of employees. Streichert mentioned that costs rose by EUR 840 million due to strikes and operational instabilities. Adjusted EBIT amounted to 1.6 billion euros, a decrease of 40% compared to the previous year. Net profit for the year amounted to 1.4 billion euros, which is why a dividend payment of 0.30 euros per share was proposed.

Streichert went into more detail about the individual business segments. Capacity at the passenger airlines was increased by 8.5%, with growth being reduced in the second half of the year in order to stabilize earnings. SWISS achieved a strong margin of 12.4%, while Lufthansa Airlines did not achieve a positive margin. Streichert cited inefficiencies, operational instability, capacity bottlenecks at service partners, a high number of technical failures due to older aircraft and strikes as reasons for the decline in earnings at Lufthansa Airline.

He explained the turnaround plan for Lufthansa Airline, which aims to stabilize operations, increase efficiency and realize financial potential. A gross EBIT effect of around EUR 1.5 billion is expected by 2026 and EUR 2.5 billion by 2028. Initial progress has already been made in stabilizing operations, which has led to an improvement in punctuality and a regularity of 99% in the first two months of 2025.

Measures have also been taken to increase efficiency and revenue, such as greater fuel efficiency, digitalization and the renegotiation of contracts. On the revenue side, eight routes from Munich will be served with the new Allegris cabin from 2025, which should lead to higher yields and additional revenue.

Lufthansa Cargo can look back on a successful year, with an adjusted EBIT of EUR 251 million. The main driver was the strong Asian e-commerce business. Lufthansa Technik achieved an adjusted EBIT of 635 million euros. Operating cash flow amounted to 3.9 billion euros, while net CapEx was 2.7 billion euros. Adjusted free cash flow amounted to 840 million euros. Net debt remained stable at 5.7 billion euros. A fuel bill of around 7.9 billion euros is expected for the full year 2025.

Moderate capacity growth of around 4% is expected for 2025, which should support sales growth and stabilize earnings. Despite headwinds, a significant increase in adjusted EBIT is expected. A Capital Markets Day is planned for fall 2025.

Spohr gave a strategic outlook and discussed fleet development. The bottlenecks at manufacturers are expected to last until the end of the decade. The Lufthansa Group is particularly affected by the loss of 41 Boeing long-haul aircraft. A total of 26 new aircraft are expected to be delivered over the course of the year. The long-haul fleet is to be comprehensively renewed by summer 2028.

From the summer timetable, all routes from Munich to the USA will be served either by A350s with the new Allegris cabin or by Airbus A380s. The response to the new Allegris cabin has been consistently positive. There have also been numerous digital advances within the Group.

Spohr emphasized that the Lufthansa Group structure is unique, as it unites many national airlines and brands under one roof. The integration of ITA is a prime example of this. The Group is continuously working on improving the customer experience, e.g. through the "One IT" project to standardize the digital infrastructure. A new umbrella brand strategy will also be introduced in 2025.

In the subsequent question and answer session, the analysts addressed various aspects.

• Jarrod Castle from UBS asked about the significance of the "significant" EBIT increase in 2025, the timetable for the acquisition of the remaining shares in ITA Airways and an update on TAP. Streichert replied that a significant increase means double-digit growth compared to 2024. would mean. Spohr added that the exercise of the option to acquire the remaining ITA shares had not yet been decided and that the privatization of TAP would probably take longer.

• Ruxandra Haradau-Doser from HSBC inquired about the status of the feeder contract with Condor, the NPS trend at Lufthansa Airline and blocked business class seats in the new Boeing 787s. Spohr explained that the contract with Condor had been terminated and that the EU Commission had concluded its investigation in this regard. In addition, Lufthansa's NPS had risen by 10 points this winter. The blocked Business Class seats were due to a lack of certification.

• Jaime Rowbotham from Deutsche Bank asked about the potential impact of the German economic stimulus programs on the Lufthansa Group and when the profit trend at Lufthansa Airline would develop positively. Spohr replied that the economic stimulus programs were fundamentally positive for Lufthansa. Streichert added that he expected a positive result for Lufthansa Airline in 2025.

• Andrew Lobbenberg from Barclays asked about the status of talks with the Lufthansa crew on productivity and the outlook for the cargo business. Spohr replied that talks with the crew were ongoing but that no agreement had yet been reached. He was optimistic about the cargo business and expected that the reduced predictability of the global economy would lead to strong demand.

• Muneeba Kayani from Bank of America inquired about the costs associated with flight irregularities and the status of business travel. Streichert stated that costs related to flight irregularities are expected to decrease and that business travel is at about 65% of pre-COVID-19 levels.

• Alex Irving from Bernstein asked about the strategic priorities for M&A activities and the topic of technology. Spohr replied that the priority is the integration of ITA and that Lufthansa has no disadvantages in technological development due to its size.

• Ruairi Cullinane from RBC Capital Markets asked about the contribution from the reversal of provisions and the development of the margin in the logistics segment. Streichert explained that the fourth quarter of 2023 had benefited from the reversal of provisions and that the strong demand in the logistics segment had led to a good margin development.

• Antonio Duarte from Goodbody asked about Lufthansa Technik's growth and earnings in the Asia-Pacific region. Streichert explained that Lufthansa Technik wanted to grow above the market average and that earnings in the premium segment were better than in the non-premium segment.

To summarize, the Lufthansa Group is facing a year of transition in which the course for future growth and higher profitability will be set. The The integration of ITA Airways, the restructuring of Lufthansa Airline and investments in modern aircraft are central elements of the strategy. Despite short-term challenges such as delivery delays and cost increases, the management is optimistic about the future.

Donald Trump wants to overturn US Chips Act + Lufthansa profits slump + DHL expects little earnings growth in 2025 + Merck aims for further profitable growth in 2024 after uprising + Kontron share price jumps to record high after order

Donald Trump wants to overturn US Chips Act

• Should the US government actually stop payments or cut commitments, this would affect many US companies: Although reporting is dominated by Intel $INTC (-1,28%), Micron $MU (-1,11%), Samsung $005930and TSMC $2330, which will receive up to 8.49 billion US dollars. But also Texas Instruments $TXN (+0,24%), Applied Materials $AMAT (+0,26%)and the University of Arizona will also receive money.
• In addition, a number of small companies are to receive between 200,000 and 300,000 US dollars. All projects can be found in a list maintained by Nist. In the case of Intel, the loss of subsidy commitments could exacerbate the current crisis.

Lufthansa $LHA (+0,69%)Profit collapses

• Strikes, higher costs and lower ticket prices caused Lufthansa's profits to plummet last year.
• The core brand Lufthansa Airlines was even in the red in its day-to-day business, as the MDax-listed company announced in Frankfurt on Thursday.
• Group-wide operating profit before special items therefore slumped by over one billion to around 1.65 billion euros.
• For the current year, CEO Carsten Spohr is aiming for a "significant" improvement.
• The already announced restructuring program should contribute to this.
• Last year, Group airlines such as Lufthansa, Swiss, Austrian and Eurowings carried 131 million passengers, seven percent more than in the previous year.
• Turnover increased by six percent to 37.6 billion euros.
• Unlike the passenger division, the cargo subsidiary Lufthansa Cargo and the maintenance division Lufthansa Technik were also able to increase their operating profit.
• The bottom line was a Group-wide surplus of just under 1.4 billion euros, 18 percent less than in the previous year.
• Nevertheless, shareholders are to receive an unchanged dividend of 30 cents per share.

DHL $DHL (-2,04%)expects only little earnings growth in 2025

• The logistics group DHL is implementing a cost-cutting program to combat sluggish global trade and the uncertain geopolitical situation.
• This is accompanied by the reduction of 8,000 jobs in the German mail and parcel business, as the company announced in Bonn on Thursday.
• CEO Tobias Meyer sees "both shadow and light" for the Group in the US customs policy.
• Meanwhile, the Bonn-based DAX-listed company expects only a sluggish improvement in earnings in 2025, after 2024 performed somewhat better than analysts had feared.
• "We continue to expect an operating result (EBIT) of over 7 billion euros in the medium term," Group CEO Tobias Meyer told the financial news agency dpa-AFX.
• He had previously targeted earnings before interest and taxes of more than EUR 7 billion for 2026.
• Similar to Brexit, the number of shipments is expected to decline on the one hand, while on the other hand DHL is likely to gain in added value, for example because more shipments will have to be cleared through customs.
• On this basis, earnings before interest and taxes (EBIT) are expected to increase slightly to at least EUR 6 billion in 2025.
• However, analysts surveyed by the company had estimated a median of 6.3 billion euros.
• At the same time, free cash flow is expected to remain stable at EUR 3.0 billion and thus be slightly better than expected, as in 2024.
• In 2024, the DAX-listed company earned EUR 5.9 billion in day-to-day business, a good 7 percent less than in the previous year.
• However, the operating result did not fall quite as sharply as analysts had feared.
• At 3.0 billion euros, the free cash flow was also better than experts had expected.
• DHL therefore met the targets it had set itself.
• At EUR 3.3 billion, the bottom line for shareholders in 2024 was a good 9 percent less profit than in 2023.
• The Board of Management intends to propose a stable dividend of EUR 1.85 per share at the Annual General Meeting.
• The share buyback program is to be increased by EUR 2 billion to EUR 6 billion and extended until 2026.

Merck $MRK (-0,59%)aims to continue to grow profitably after the upswing in 2024

• After a weak previous year, day-to-day business at the pharmaceutical and technology group Merck KGaA has picked up again in 2024.
• The final quarter was above average.
• CEO Belen Garijo now wants to build on the upswing in the current year.
• "Merck is back on course for growth with all three businesses," said the manager in a statement on Thursday.
• "In 2025, we will once again grow profitably across the entire company."
• Shareholders are to receive a stable dividend of 2.20 euros for the past year.
• According to the statement, Merck is targeting sales of EUR 21.5 to 22.9 billion in the current year, which corresponds to organic growth of three to six percent.
• Adjusted for special effects, earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) are expected to increase organically by three to eight percent to EUR 6.1 to 6.6 billion.
• Last year, Group revenue climbed by 0.8 percent year-on-year to EUR 21.16 billion, supported by good business with medicines and semiconductor materials for artificial intelligence (AI).
• Since the second half of the year, there have also been signs of an upturn in the laboratory division, after the division had suffered from weak demand for a long time following the coronavirus boom.
• The Group also kept its costs in check.
• Adjusted for special effects, earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) increased by 3.3% to almost EUR 6.1 billion.
• Merck's sales and operating result were thus in line with its own targets and also more or less in line with analysts' expectations.
• Due to higher taxes, however, the Darmstadt-based company earned just under EUR 2.79 billion, around two percent less than in the previous year.

Kontron $KTN (+2,43%)share price jumps to record high after order

• Following an order, Kontron shares reached a record high of EUR 23.34 on Wednesday.
• Most recently, the share price rose by 12.9 percent to EUR 23.18 and was one of the top positions in the small cap index SDax.
• The Austrian technology group announced a further order from the automotive industry worth 40 million euros.
• This involves the delivery of highly developed sensor technologies.
• This should at least benefit the perception of the share, commented a trader.
• On February 20, Kontron had announced an order with a total volume of 250 million US dollars over several years from a "leading supplier to the automotive industry".

Thursday: Stock market dates, economic data, quarterly figures

• ex-dividend of individual stocks
• Qualcomm USD 0.85
• BHP Group AUD 0.80

• Quarterly figures / company dates USA / Asia
• 22:00 Broadcom quarterly figures
• 22:05 Hewlett Packard Enterprise quarterly figures
• No time specified: Costco Wholesale | Universal Music Quarterly figures

• Quarterly figures / Company dates Europe
• 07:00 Lufthansa | DHL Group | Merck KGaA | Siltronic | Ströer | Zalando | Aareal Annual results
• 07:30 Compugroup Medical | Prosiebensat1 | Dürr | GFT Technologies | Air France-KLM | Bouygues Annual results
• 08:00 Deutsche Beteiligungs AG | Reckitt Benckise Annual Results
• 09:00 DHL Group Analyst Conference | Aareal Bank | Zalando BI-PK | Ströer Analyst and Press Conference
• 09:30 Lufthansa BI-PK
• 10:00 Merck KGaA PK | Siltronic Analyst Conference | Dürr BI-PK
• 10:45 Zalando Analyst Conference
• 11:00 DHL Group BI-PK
• 11:30 Prosiebensat1 BI-PK
• 12:30 Lufthansa Analyst Conference
• 14:00 Merck KGaA Analyst Conference | Dürr Analyst Conference
• 18:00 Vivendi Annual Results
• No time specified: Andritz | Solvay Annual figures

• Economic data

08:00 DE: Services turnover December

11:00 EU: Retail Sales January Eurozone FORECAST: +0.1% yoy previous: -0.2% yoy

12:00 TR: Turkish Central Bank, outcome of the Monetary Policy Council meeting Key interest rate FORECAST: n/a previously: 45.00%

14:15 EU: ECB, outcome of the Governing Council meeting and staff projection for growth and inflation in the eurozone Deposit rate FORECAST: 2.50% previously: 2.75%

14:30 US: Initial jobless claims (week) FORECAST: 235,000 previously: 242,000

14:30 US: Trade Balance January FORECAST: -128.7 bn USD previously: -98.4 bn USD

14:30 US: Productivity ex Agriculture (2nd release) 4Q annualized PROGNOSE: +1.2% yoy 1st release: +1.2% yoy 3rd quarter: +2.3% yoy Unit labor costs PROGNOSE: +3.0% yoy Preliminary: 1st release: +3.0% yoy Previously: 3rd quarter: +0.5% yoy