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Preussag profits boosted
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March 30, 2001: 7:21 a.m. ET
Thomson Travel contributes 60 percent of sales growth at German tour firm
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LONDON (CNN) - Preussag, Europe's No. 1 travel operator, said on Friday net profit rose 17 percent, fueled by gains from its purchase of Thomson Travel Group.
The German company, which used to make steel, said net profit rose to  403 million ($354 million). Analysts polled by Reuters expected a 5 percent increase to 363.4 million.
 The increase in profits "is primarily due to the first time consolidation of Thomson Travel Group," Michael Frenzel, chairman of Preussag, said in a statement. Preussag bought Thomson for $2.7 billion in May.
Sales grew 32 percent to 21.8 billion, with Thomson accounting for 60 percent of the growth.
Frenzel said at a press conference in Hanover he expected sales to rise by 8 percent to 32.5 billion in 2001 and operating profit to grow by 20 percent.
Preussag (FPRS) shares rose 0.9 percent to 37.15 in midday Frankfurt trade.
High oil prices last year also boosted earnings in the company's energy division.
Preussag expects the sales of housing stock Minimax and shares in Thomas Cook to bring in 850 million in liquid assets. Preussag sold UK- based Thomas Cook for $789 million to German rival C&N Touristic in December
"These steps will therefore make a major contribution to reducing Preussag's net indebtedness, as well as advancing our strategic repositioning," Frenzel said in the statement.
At the start of the current financial year, Preussag said that bookings in its central Europe business for the winter season are up 5.6 percent, compared with the previous year.
Bookings for its summer season "are now coming in strongly after a slow start," with booked revenue up 7.4 percent, the company said. Its central Europe business includes Germany, the Netherlands, Belgium, Switzerland, Austria and Poland.
--from staff and wire reports 
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