TUI AG says 1 bln eur profit target coming into reach

BERLIN, Dec (Shanghai: 600875.SS - news) 10 (Reuters) - German travel and tourism group TUI AG (Xetra: TUAG00 - news) said its target of 1 billion euros ($1.2 billion) in core profit was coming into reach in the current year as it reported its final set of results ahead of its merger with TUI Travel (LSE: TT.L - news) .

London-listed TUI Travel and TUI AG, the British company's biggest shareholder, reached an agreement in September on the terms of a 6.5 billion-euro merger to create the world's largest leisure tourism group. The deal will complete on Dec. 17.

TUI AG reported underlying earnings before interest, tax and amortisation for the financial year to end-September 2014 up 14 percent to 868.5 million euros, against forecasts for 860 million in a Reuters poll.

TUI AG proposed a dividend of 0.33 euros per share, up from the 0.15 euros paid out for the last financial year.

($1 = 0.8069 euros) (Reporting by Victoria Bryan; Editing by Kirsti Knolle)