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Arcandor Sales Jump Sharply on Thomas Cook

Arcandor posted a near ten-times jump in third-quarter operating profit Tuesday, due mainly to a contribution from newly-acquiredtravel company Thomas Cook and its consolidation with MyTravel, company CEO Thomas Middelhoff told "Power Lunch Europe."

The travel sector and merger of Thomas Cook and My Travel "has a high importance on our numbers," Middelhoff said, adding that more consolidation could be on the cards, which could in turn create further value next year.

The Essen-based retailer, whose Karstadt department stores have been in Germany for more than a century, said adjusted earnings before interest, tax, depreciation and amortization (EBITDA) climbed to 700.5 million euros ($1 billion) from 72.8 million in the year-ago quarter.

Thomas Cook, whose results from July 1 to Oct. 31 were included, contributed 722.8 million euros. Arcandor bought out partner Lufthansa a year ago to get full control of Thomas Cook.

Shares of the company rose 1.7 percent to 17.79 euros.

Sales rose 131 percent to 7.35 billion euros, with 5.36 billion coming from Thomas Cook

Primondo's adjusted EBITDA was a loss of 23.2 million euros, narrower than a year-ago loss of 38.4 million euros. Sales of the unit rose about 15 percent to 1.02 billion euros.

At Karstadt, which operates department and sports stores, sales fell 2.8 percent to 977 million euros and EBITDA rose to 0.9 million euros from 0.1 million.

Arcandor, which has changed its reporting from a calendar year to a fiscal year ending in September, reiterated it expects EBITDA of more than 1.3 billion euros and sales of over 23 billion in the year ending September 2009.

"Our core divisions are performing well," Chief Executive Thomas Middelhoff, who has helped revamp the company since mid-2005, said in a statement. "We are upbeat about the future."

*Reuters contributed to this report