EUROPEAN HEAT WAVE
Faulty summer call cooks Thomas Cook CFO’s goose
Frankfurt — Thomas Cook Group has replaced its CFO after a botched travel forecast forced the tour operator to slash its expectations twice in two months.
An extraordinarily hot European summer meant less travelling. "Many customers spent June and July enjoying the sunshine at home and put off booking their holidays abroad," said CEO Peter Fankhauser.
The share price had its worst fall in two years after the group said underlying profit for the year to September would be 13% lower than the bottom end of a July 31 forecast indicating a downgrade.
Finance chief Bill Scott steps down after less than nine months. Former Lego executive Sten Daugaard takes his place.
Thomas Cook failed to reduce its earnings seasonality. This means most profit is made in July-September, leaving it vulnerable if business does not go as planned.