TAM S.A. 4th Quarter Results Announcement
March 31 2008 - 8:00AM
PR Newswire (US)
SAO PAULO, Brazil, March 31 /PRNewswire-FirstCall/ -- TAM S.A.
(BOVESPA: TAMM4, NYSE: TAM), reports its fourth quarter results for
2007 (4Q07). Operational and financial data, except where otherwise
indicated, are presented based on amounts consolidated in Reais
(R$) and prepared in accordance with accounting principles
generally accepted in Brazil (BR GAAP). (Logo:
http://www.newscom.com/cgi-bin/prnh/20080221/SPTH002LOGO )
Operational Performance Highlights -- 7.3 million passengers
transported -- an increase of 10% -- Decrease in block hours/day
per aircraft from 13.0 to 12.3 -- Gross Revenues of R$ 2.4 billion,
an increase of 15.9% -- Begin operations of 2 A340, 2 A330, 7 A320
and 1 A321 compensated by 3 F100 returned in 4Q07 vs. 3Q07 -- New
daily flight to Frankfurt since November 30 -- New daily flight to
Madrid since December 21 -- Begin of code share operations with
United Airlines, LAN and signature of contract with Lufthansa --
Loan agreement with BNP Paribas to finance up to US$ 117 million in
pre-delivery payment (PDP) operations for 30 Airbus aircraft -- R$
83 million EBIT and R$ 353 million EBITDAR, margins of 3.6% and
15.4% respectively in 4Q07 Domestic Operations Domestic Operations
-- TAM reached 48.2% average market share in 4Q07. -- ASKs
(capacity) increased 9.3% in 4Q07 compared to 4Q06 as a result of
the increase in the operating fleet of 20 A320, 1 A319 and 3 A321,
compensated by 9 F100 returned and other 5 in redelivery and the
reduction in block hours by aircraft from 13.0 hours/day to 12.3
hours/day (total operation). -- RPKs (demand) increased 9.9% in
4Q07 compared to 4Q06. -- TAM's domestic load factor increased to
71.1% in 4Q07, compared to 70.7% in 4Q06. International Operations
-- TAM reached 71.5% average market share in 4Q07 -- ASKs
(capacity) increased 71.6% in 4Q07, due to the increase of 2 A340,
2 A330 and 3 MD11 into our international operating fleet allowing
the beginning of daily flights to Milan, Frankfurt and Madrid and
the third daily flight to Paris. In South America we started daily
flights to Cordoba, Caracas and Montevideo through the increase in
the narrow body fleet in the region. -- RPKs (demand) increased
65.3% comparing 4Q07 with 4Q06. -- TAM's international load factor
decreased 2.7p.p. to 70.8% in 4Q07 compared to 73.5% in 4Q06.
Financial Performance -- Total CASK increased by 1.4% in 4Q07
compared to 4Q06. -- EBIT and EBITDAR margins of 3.6% and 15.4%
respectively. -- Net income of R$ 49.8 million, a positive margin
of 2.2%. -- Our total cash and cash equivalents equalled R$2,607
million. -- Return on Assets (ROA) of 2.0% -- Return on Equity
(ROE) of 8.4% To see the full press release, visit the company's
website: http://www.tam.com.br/ir About TAM: TAM
(http://www.tam.com.br/) has been the leader in the Brazilian
domestic market for more than four years, and held a 50.6% domestic
market share and 67.3% international market share at the end of
February 2007. TAM operates regular flights to 42 destinations
throughout Brazil. It serves 79 different cities in the domestic
market through regional alliances. Additionally, it maintains
code-share agreements with international airline companies that
allow passengers to travel to a large number of destinations
throughout the world. TAM was the first Brazilian airline company
to launch a loyalty program. Currently, the program has over 4.5
million subscribers and has awarded more than 5.2 million tickets.
Forward-looking statement: This notice may contain estimates for
future events. These estimates merely reflect the expectations of
the company's management and involve risks and uncertainties. The
Company is not responsible for investment operations or decisions
taken based on information contained herein. These estimates are
subject to changes without prior notice.
http://www.newscom.com/cgi-bin/prnh/20080221/SPTH002LOGO
http://photoarchive.ap.org/ DATASOURCE: TAM S.A. CONTACT: Libano
Miranda Barroso, TAM Investor Relations, +011-55-11-5582-9715, fax,
+011-55-11-5582-8149, Web site: http://www.tam.com.br/
http://www.tam.com.br/ir
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