Auckland Airport downgrades profit expectations

Auckland International Airport has downgraded its full-year profit forecast.

The company today said it expected its reported surplus after-tax result for the year ended June 30 would be in the order of $91 million to $92 million.

In February, when announcing its half-year result, the airport had said it had expected the surplus for the full year to be similar to the previous year.

The airport reported an after tax profit for year to the end of June 2006 of $103.2 million.

The company said today that its surplus after tax result for the year would require an increased provision to be made in respect of the company's long-term incentive schemes for senior management and staff.

A significant lift in the airport's share price during the past few months had increased the company's liability at year end by about $9.9 million.

That was a non-cash item in the 2007 statement of financial performance.

The l iability was in respect of incentive plans covering a four year period, and was not directly related to the airport's day to day operating performance.

- NZPA