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United: $68 Million Net Income In Third Quarter, excluding restructuring charges

WatchYourElbows

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a LOT
Keep up the good work United!!!!!!!!!!!!


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UAL Corporation Reports Third-Quarter 2005 Results

Monday October 31, 10:16 am ET

- Third-Quarter Operating Earnings of $165 Million, a $245 Million Improvement Year-Over-Year Despite Higher Fuel Prices Negatively Impacting Fuel Expenses By $405 Million
- $68 Million Net Income, Excluding Restructuring Charges
- Predominantly Non-Cash Bankruptcy Related Charges of $1.8 Billion Result in Net Quarterly Loss of $1.8 Billion
- Mainline Passenger Unit Revenue up 11 percent
- Mainline Unit Costs Up 5 percent on 5 percent Lower Capacity Excluding Fuel, Mainline Unit Costs Down 5 percent

CHICAGO, Oct. 31 /PRNewswire-FirstCall/ -- UAL Corporation (OTC Bulletin Board: UALAQ - News), the holding company whose primary subsidiary is United Airlines, today reported its third-quarter 2005 financial results.

UAL reported third-quarter operating earnings of $165 million, $245 million better than the same quarter last year, despite higher fuel prices for the mainline and regional affiliates negatively impacting fuel expense by $405 million year-over-year. UAL reported a net loss of $1.8 billion, or a loss per basic share of $15.26, which includes $1.8 billion in reorganization items. The company believes the best indicator of United's post-reorganization financial performance is provided by reviewing operating and net earnings excluding restructuring charges. Excluding the reorganization items, UAL earned a net profit for the third quarter totaling $68 million.

Reorganization items were primarily driven by $1.7 billion in non-cash aircraft rejection charges. It is common for the results of operations of companies progressing through Chapter 11 to be impacted by non-cash charges related to their reorganization, especially as restructuring work nears completion. Charges based on the claims of our creditors are recorded at the amount expected to be allowed by the court. However, as shown in our Plan of Reorganization, these claims are expected to be settled at exit for a minor fraction of the amount of the charges recorded. Looking forward, the company is expected to record a large gain at exit in 2006 when these claims are settled for less than the amounts originally recorded. It is important to note that this is a matter of accurate accounting, and that neither the aircraft rejection charges recorded at this time nor the gain expected to be recorded at exit in 2006 have any significant impact on the company's cash position.

http://biz.yahoo.com/prnews/051031/nym127.html?.v=27
 

jehtplane

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WatchYourElbows said:
Keep up the good work United!!!!!!!!!!!!


______________________________________________________



UAL Corporation Reports Third-Quarter 2005 Results

Monday October 31, 10:16 am ET

- Third-Quarter Operating Earnings of $165 Million, a $245 Million Improvement Year-Over-Year Despite Higher Fuel Prices Negatively Impacting Fuel Expenses By $405 Million
- $68 Million Net Income, Excluding Restructuring Charges
- Predominantly Non-Cash Bankruptcy Related Charges of $1.8 Billion Result in Net Quarterly Loss of $1.8 Billion
- Mainline Passenger Unit Revenue up 11 percent
- Mainline Unit Costs Up 5 percent on 5 percent Lower Capacity Excluding Fuel, Mainline Unit Costs Down 5 percent

CHICAGO, Oct. 31 /PRNewswire-FirstCall/ -- UAL Corporation (OTC Bulletin Board: UALAQ - News), the holding company whose primary subsidiary is United Airlines, today reported its third-quarter 2005 financial results.

UAL reported third-quarter operating earnings of $165 million, $245 million better than the same quarter last year, despite higher fuel prices for the mainline and regional affiliates negatively impacting fuel expense by $405 million year-over-year. UAL reported a net loss of $1.8 billion, or a loss per basic share of $15.26, which includes $1.8 billion in reorganization items. The company believes the best indicator of United's post-reorganization financial performance is provided by reviewing operating and net earnings excluding restructuring charges. Excluding the reorganization items, UAL earned a net profit for the third quarter totaling $68 million.

Reorganization items were primarily driven by $1.7 billion in non-cash aircraft rejection charges. It is common for the results of operations of companies progressing through Chapter 11 to be impacted by non-cash charges related to their reorganization, especially as restructuring work nears completion. Charges based on the claims of our creditors are recorded at the amount expected to be allowed by the court. However, as shown in our Plan of Reorganization, these claims are expected to be settled at exit for a minor fraction of the amount of the charges recorded. Looking forward, the company is expected to record a large gain at exit in 2006 when these claims are settled for less than the amounts originally recorded. It is important to note that this is a matter of accurate accounting, and that neither the aircraft rejection charges recorded at this time nor the gain expected to be recorded at exit in 2006 have any significant impact on the company's cash position.

http://biz.yahoo.com/prnews/051031/nym127.html?.v=27



Good work for losing 1.8 billion?
 

klhoard

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WatchYourElbows said:
. . .<snip> . .However, as shown in our Plan of Reorganization, these claims are expected to be settled at exit for a minor fraction of the amount of the charges recorded. . . .<snip>..
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In other words, we're going to screw the people that trusted us in the past. . .
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C

ChperpltII

Quote:
Originally Posted by jehtplane
Good work for losing 1.8 billion?


That was my question!!
Maybe if you take a moment to read the article, you might have a better understanding of what the article speaks about.
 

D-Bo

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KeroseneSnorter said:
That was my question!!
If you read about the 1.7 B in non-cash aircraft rejection charges youd understand that a 1.8 Billion dollar loss is just a paper loss. Not an actual cash loss. Their cash on hand has actually gone up for the past couple of quarters. I'm sure a 1.8 Billion dollar loss sounds exciting to some peoiple out there but they're getting excited over nothing. UALs not going anywhere anytime soon.
 

klhoard

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Joined
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Posts
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D-Bo said:
If you read about the 1.7 B in non-cash aircraft rejection charges youd understand that a 1.8 Billion dollar loss is just a paper loss. Not an actual cash loss. Their cash on hand has actually gone up for the past couple of quarters. I'm sure a 1.8 Billion dollar loss sounds exciting to some peoiple out there but they're getting excited over nothing. UALs not going anywhere anytime soon.
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It's not a paper loss if you're the one promised this money pre-BK. . .
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C

ChperpltII

.It's not a paper loss if you're the one promised this money pre-BK. .
True, but the topic is a UAL loss. The loss to the leasing companies are a tax write off as well, so it's not as bad as it looks for any of the parties.
 

Dennis Miller

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Mar 13, 2003
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I see the resident soda jerk is back from Europe. One more time............................Keep up the good work United!!!!!!!!!!!!:puke:


Diet Coke and a cup of ice please sugar britches.:smash:
 

I.P. Freley

I like people food
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Dec 26, 2001
Posts
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Enough
ChperpltII said:
True, but the topic is a UAL loss. The loss to the leasing companies are a tax write off as well, so it's not as bad as it looks for any of the parties.
ChperpltII??? WTF happened to ChperpltI?
 
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