SWISSAIR REPORTS LOWER PROFIT AND DIVIDEND

  Swissair &lt;SWSZ.Z> reported a 5.8 pct
  drop in 1986 net profit to 64.5 mln Swiss francs and said that,
  in line with its new, flexible dividend policy, it would cut
  its payout to 33 francs per share from 38.
      President Robert Staubli told a news conference that the
  first two months of this year gave hope that 1987 profit would
  at least equal last year's figure, but said much depended on
  outside factors such as fuel prices and the exchange rate.
      The fall was largely due to a 60 mln franc loss on
  Swissair's core flying business last year, against a profit of
  27 mln francs the previous year, he said.
      The net profit figure was reached after receipt of some 68
  mln francs from plane sales, compared with a mere 17 mln francs
  in 1985. Finance Head Martin Juenger said he expected around 20
  mln francs from sales this year, although said much depended on
  the speed with which it decided to sell its DC-10s.
      Gross profit for 1986 reached 340.5 mln francs, with 276
  mln francs subtracted for ordinary depreciation.
      Gross profits for the previous year had been 382.5 mln
  francs, with 314 mln subtracted for depreciation, including 45
  mln francs supplementary depreciation.
      Staubli said the 1986 result, well below predictions made
  this time last year, suffered considerably due to exchange rate
  fluctuations, in particular the strength of the Swiss franc.
      While the negative effects on revenue of the sharp drop in
  the dollar were partially compensated for by cheaper fuel
  prices, there was no such offset for the strength of the franc
  against other European currencies.
      "Income and profit generated by services to these countries
  shrank by a very substantial margin," he said. "Exchange rate
  trends therefore hit us much more severely than most other
  airlines."
  

