Cargolux: revised first half 2014 results

My Orchids. Phalaenopsis "Numbers Game", Photo ET

Cargolux: revised first half 2014 results

In an interview yesterday to Luxemburger Wort, Cargolux’ CFO Richard Forson gave a revised number for the company’s results, saying that the reported loss of $31 million was a rumor. This wasn’t really a rumor, but the company’s own initial “estimate”. The revised number is merely a $11 million differential with expectations. The superficial reader will conclude that the revised number is a loss of $11 million, and an improvement of $20 million vs. the “rumor”.

However Forson is really saying that "In Wirklichkeit betrug der Rückstand gegenüber unserem Ziel 11 Millionen Dollar seit Januar". But that ZIEL was a budgeted loss of $14.4 million, and $11 million is the “Rückstand“ on that budget. So there is a loss of $25.4 million. 

There is still some ambiguity here, as one has to extrapolate what was being said. But this is the season: CWA negotiations always call for positioning. But whatever the numbers, there is always a dilemma: if they look too good, it strengthens the employees’ bargaining position, and among others argues against a hiring freeze. If they look bad, the company looks bad.