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Atlas Air Worldwide Holdings, Inc. Third-Quarter Net Earnings Increase 181%.

Article Excerpt
Atlas Air Worldwide Holdings, Inc. (AAWW) (Nasdaq: AAWW), a leading provider of global air cargo assets and outsourced aircraft operating services, announced a 181% increase in net earnings for the third quarter of 2009 compared with the third quarter of 2008. The strong increase in earnings in the third quarter follows sharp year-over-year improvements in earnings reported for the first and second quarters of 2009.

For the three months ended September 30, 2009, AAWW reported net income of $14.7 million, or $0.70 per diluted share, on pretax earnings of $21.7 million and revenues of $255.5 million. Operating and financial results for the quarter compared with net income of $5.2 million, or $0.24 per share, on pretax earnings of $10.2 million and revenues of $460.7 million for the three months ended September 30, 2008.

For the nine months ended September 30, 2009, AAWW reported net income of $49.4 million, or $2.35 per diluted share, on pretax earnings of $78.0 million and revenues of $740.0 million. Results for the period contrasted with nine-month 2008 net income of $1.4 million, or $0.07 per diluted share, on pretax earnings of $6.7 million and revenues of $1,272.5 million.

"Net earnings in the third quarter were well over two and one-half times the amount that we reported in the third quarter of 2008, despite a still challenging though improving business environment and despite a smaller total fleet size than we had last year," said William J. Flynn, President and Chief Executive Officer of AAWW.

"Our strong third-quarter earnings, like our previous quarterly results this year and the results we expect to report for the fourth quarter, reflect our successful efforts to transform our business, our operating cost base and our fleet throughout 2008 and 2009. Demand in our AMC segment in the third quarter was consistent with the levels that we have seen in 2009, and we are encouraged by improving ACMI customer utilization and by strengthening charter yields."

Third-quarter and year-to-date 2009 results reflect both the deconsolidation of Polar Air Cargo Worldwide, Inc. from AAWW for financial reporting purposes in October 2008 and the consolidation of Global Supply Systems Limited (GSS), a private company in which AAWW holds a 49% interest, in April 2009.

Revenues and pretax earnings for the first nine months of 2009 included a one-time benefit in the first quarter of a $10.0 million fee for the effective early termination of a contract. In addition, pretax earnings for the nine-month 2009 period included...