http://biz.yahoo.com/rb/080711/ual.html?.v=2
Reuters
UAL sees second quarter charges near $2.7 billion
Friday July 11, 10:06 am ET
CHICAGO (Reuters) - UAL Corp (NasdaqGS:UAUA - News), parent of United Airlines, said on Friday it plans to take $2.6 billion to $2.7 billion in charges against second-quarter earnings, due to record-high fuel prices and the company's reduced market capitalization.
The parent of the No. 2 U.S. airline said in a filing with the U.S. Securities and Exchange Commission that the bulk of the charges -- $2.2 billion to $2.3 billion -- is due to the writedown of non-cash assets.
"The company has concluded that the entire value of goodwill on its books has to be written off," UAL said in the filing.
The airline industry has been battered by soaring fuel prices. Shares of UAL have fallen about 90 percent so far this year, while the Amex airline index (AMEX:^XAL - News) has shed about 60 percent.
UAL, which will report quarterly earnings on July 22, said last month that it paid an average price of $3.33 per gallon of jet fuel in the second quarter, up $2.08 from the year-ago quarter.
The company, along with all its top rivals, has announced capacity and staff cuts to help offset fuel costs.
In addition to the goodwill charges, UAL expects to record accounting charges $246 million related to the retiring of some B737 planes from the company's fleet, severance charges of $82 million related to job cuts, and other largely non-cash charges of $60 million related to certain projects that have been terminated or indefinitely deferred.
Shares of UAL were down 35 cents in morning trade at $3.82 on Nasdaq.
Reuters
UAL sees second quarter charges near $2.7 billion
Friday July 11, 10:06 am ET
CHICAGO (Reuters) - UAL Corp (NasdaqGS:UAUA - News), parent of United Airlines, said on Friday it plans to take $2.6 billion to $2.7 billion in charges against second-quarter earnings, due to record-high fuel prices and the company's reduced market capitalization.
The parent of the No. 2 U.S. airline said in a filing with the U.S. Securities and Exchange Commission that the bulk of the charges -- $2.2 billion to $2.3 billion -- is due to the writedown of non-cash assets.
"The company has concluded that the entire value of goodwill on its books has to be written off," UAL said in the filing.
The airline industry has been battered by soaring fuel prices. Shares of UAL have fallen about 90 percent so far this year, while the Amex airline index (AMEX:^XAL - News) has shed about 60 percent.
UAL, which will report quarterly earnings on July 22, said last month that it paid an average price of $3.33 per gallon of jet fuel in the second quarter, up $2.08 from the year-ago quarter.
The company, along with all its top rivals, has announced capacity and staff cuts to help offset fuel costs.
In addition to the goodwill charges, UAL expects to record accounting charges $246 million related to the retiring of some B737 planes from the company's fleet, severance charges of $82 million related to job cuts, and other largely non-cash charges of $60 million related to certain projects that have been terminated or indefinitely deferred.
Shares of UAL were down 35 cents in morning trade at $3.82 on Nasdaq.
