Up in the air in Chile
LAN Airlines, Chile's leading domestic airline, reports an improved fourth-quarter profit even as revenue dropped.
On Tuesday, the Chilean airline, which accounts for nearly 75% of Chile's domestic air passenger traffic, reported fourth-quarter 2009 net income of $109.8 million. That was an increase of 17.6% from the very depressed fourth quarter of 2008. In the third quarter of 2009, net income fell by 37% from 2008's third quarter.
Total revenue in the fourth quarter declined to $1.07 billion from $1.11 billion in the same quarter of 2008 on a 1.6% decline in passenger revenue and a 10.7% drop in cargo revenue. (Passenger revenue makes up 71% of total revenue.) For all of 2009, revenue declined by 14.7% from 2008, while net income fell by 31%.
Look out for some volatility in the stock as winning billionaire presidential candidate Sebastian Pinera carries out his promised sale of his 26% stake in LAN Airlines before he takes office on March 11.
A recent sell-off in the Chilean peso, which hit a four-week low on January 25, had sent LAN's stock lower this year by 5.7% until it rallied by almost 1.7% on the earnings news.
The stock is a member of my long-term Jubak Pick's 50. If you've been looking to add shares of this play on rising air travel in Latin America (besides Chile, LAN services Peru, Ecuador, and Argentina) and on rising exports to the United States (LAN operates a big air cargo facility in Miami), this volatility might provide a good buying opportunity.
For more on why you want to increase your exposure to emerging market stocks such as LAN Airlines, see this post).
At the time of this writing, Jim Jubak owned shares of LAN Airlines in his personal portfolio.
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The Fed may start tapering in just a few months. Here are a few of the likely winners and losers.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.