Where''s the News?

[KCFlyer]

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On 7/16/2003 9:29:24 AM FWAAA wrote:

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On 7/16/2003 8:59:59 AM Hopeful wrote:

Market''s open and no news on AMR earnings!

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In last week''s 8-K, AMR disclosed that the earnings Conference Call would occur at 2:00pm EDT this afternoon. Look for a news release after lunch.

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By after lunch, do you mean after the markets have closed? Not a good omen.

 

[Hopeful]

Investors brace for AMR Corp. results

By August Cole, CBS.MarketWatch.com
Last Update: 10:30 AM ET July 16, 2003







SAN FRANCISCO (CBS.MW) -- Airline stocks traded lower Wednesday as investors prepare to pore over AMR Corp.''s quarterly results, the first such report due from the sector.





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The Amex Airline Index (XX:$XAL: news, chart, profile) gave up 0.8 percent.

Shares of AMR (AMR: news, chart, profile) lost 14 cents to $10.42. The parent of American Airlines, the world''s biggest carrier, is forecast to turn in losses near $2.68 a share for the second quarter, according to the consensus estimate from Reuters Research. See full story.

Delta Air Lines (DAL: news, chart, profile) gave back 15 cents to $14.13. Ahead of Thursday''s quarterly reports, Continental Airlines (CAL: news, chart, profile) lost ground while Northwest Airlines (NWAC: news, chart, profile) traded flat.

JetBlue Airways (JBLU: news, chart, profile) fell 86 cents to $43.09, a pullback of 2 percent.

Southwest Airlines (LUV: news, chart, profile) eased 5 cents to $16.88.

August

 

[FWAAA]

The NYSE is open until 4:00 pm EDT - the conference call is at 2:00 pm. The news releases will begin shortly after the conference call (before the markets close).

What kind of "omen" would be involved if the news were released at 4:05 pm? Everyone knows that AMR lost hundreds of millions this quarter.

 

[FWAAA]

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On 7/16/2003 8:59:59 AM Hopeful wrote:

Market''s open and no news on AMR earnings!

----------------​

In last week''s 8-K, AMR disclosed that the earnings Conference Call would occur at 2:00pm EDT this afternoon. Look for a news release after lunch.

 

[KCFlyer]

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On 7/16/2003 9:38:14 AM FWAAA wrote:

The NYSE is open until 4:00 pm EDT - the conference call is at 2:00 pm. The news releases will begin shortly after the conference call (before the markets close).

What kind of "omen" would be involved if the news were released at 4:05 pm? Everyone knows that AMR lost hundreds of millions this quarter.

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Everybody may know that, but look at the behaviour of Vanguard in their final days...they always waited until 4:05 to release earnings or other pieces of bad news. You can bet your bottom dollar that if the news was better than expected the call would be held at 10 a.m. and the press release issued by noon. Wall Street is an odd duck...when a company announces losses that were less than forecast, investors love it. When a company announced that a company showed a profit, but less than what was expected, the stock is punished. Then things usually even out over the next week. Go figure.

 

[Hopeful]

Market''s open and no news on AMR earnings!

 

[Hopeful]

Something different here this time. Normally in past, you would get up in the morning and the news was released before the market opened.

Something very different!

I think you will also see AA announcing major restructuring either today or very soon.

 

[FWAAA]

News release just posted:


----------------------------------------------------
AMR Corporation Reports Improved Second-Quarter Financials as Cost Savings And Turnaround Plan Begin Yielding Results

Wednesday July 16, 11:30 am ET

Airline''s Second-Quarter Net Loss Significantly Lower Than Last Year''s Quarter; Sees Modest Profit in June; Ends the Quarter with $2.4 Billion In Total Cash and Short-Term Investments

American to Maintain Positive Momentum on Achieving Turnaround Plan Objectives By Realigning Mid-Continent Hub Schedules

Third Reservations Office to Close This Year as Consumers Continue Choosing Alternative Ways to Book Flights


FORT WORTH, Texas, July 16 /PRNewswire-FirstCall/ -- AMR Corporation (NYSE: AMR - News) continues making progress in its march to profitability, including reporting improved financial results.

For the quarter, AMR reported a net loss of $75 million, or $.47 per share. Included in this amount are a handful of special items, including a $358 million cash payment from the Transportation Security Administration (TSA) under the 2003 Emergency Wartime Supplemental Appropriation Act. Excluding special items, AMR reported a net loss of $357 million, or $2.26 per share. While still a loss, these results represent a sizeable improvement over the second quarter of last year and are dramatically better than the $1.04 billion net loss AMR recorded in this year''s first quarter.

AMR made significant progress over the course of the second quarter. April was a difficult month for the company, with lackluster demand due to the war in Iraq and the outbreak of SARS. In May, however, AMR reported positive operating cash flow driven by year-over-year improvements in unit revenue and the implementation of its new labor agreements. These trends continued in June, and AMR achieved a modest profit for the month.

"Clearly, the tremendous strides we''ve been able to achieve have been the result of the unprecedented labor and nonlabor agreements we reached in May," said Gerard Arpey, AMR''s president and CEO. "The sacrifice of our employee groups is evident in the dramatically improved performance we''ve seen over the past months. But, while we''re encouraged, we must keep in mind that we''re operating in peak summer season right now, and the winter months will be more challenging. We have a lot of work to do before we''re able to achieve sustained profitability at acceptable levels."

The company''s cash position also improved during the quarter, with a total cash and short-term investments balance on June 30 of $2.4 billion (including $550 million in restricted cash and short-term investments), an increase of $555 million compared to the comparable balance at the end of the first quarter. Since June 30, AMR has completed a $250 million aircraft financing, bringing the total balance to $2.7 billion as of today.

As noted earlier, the company''s second-quarter financial results included several special items -- both gains and losses -- resulting mostly from the company''s restructuring efforts. In addition, in keeping with the provisions of SFAS 109, AMR''s second quarter 2003 results do not reflect a benefit for federal and state income taxes. Conversely, AMR''s second quarter 2002 results did reflect a tax benefit. To provide better comparability, after adjusting for these items, the company recorded a loss of $357 million this quarter, or $2.26 per share, versus a loss of $720 million, or $4.64 per share, in the second quarter of last year.

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[AirLUVer]

I think the bigger news is that AA is going to close the STLRO - and cut in half the daily departures from STL.

 

[MiAAmi]

Still not the doom and gloom that eveyone expected.