P&O NEDLLOYD SEES $61-MILLION 2ND-QUARTER LOSS

P&O NEDLLOYD SEES $61-MILLION 2ND-QUARTER LOSS P&O Nedlloyd reported second-quarter pre-tax loss of $61 million, compared to a profit of $32 million in the second quarter of 2001.
   The carrier's pre-tax loss includes a $15 million restructuring charge. Revenues were off 3.8 percent to $1.02 billion.
   The declines came despite a 13.2 percent increase in second-quarter volumes, to 899,100 TEUs. Strongest growth came in the North American trade, up 19.4 percent to 278,700 TEUs. The north/south and cross trades saw volumes rise 14.1 percent to 332,900 TEUs, while Europe/Asia improved 6.9 percent to 287,500 TEUs.
   However, average revenue per TEU fell 15.0 percent to $1,131, as rates in the Europe/Asia and transpacific trades were particularly affected. Revenue rates are now improving in some traces, including Europe/Asia, P&O Nedlloyd said.
   'These improvements will take some time to come through because of the duration of normal shipping contracts and their overall effect will always depend on broader trends in supply and demand,' the carrier said.
   P&O Nedlloyd also blamed continued overcapacity and uncertain world economy for its declining earnings. The carrier anticipates the weakness of the U.S. dollar will continue to negatively impact its results through the second half of 2002.
   The carrier said cost-saving programs are showing results, as achieved first-half savings of $190 million on an annualized basis. P&O Nedlloyd anticipates $250 million in new savings by the end of 2002, $50 million more than previously announced. The company expects cost savings to reach $350 million by the end of 2003.
   For the first half of 2002, P&O Nedlloyd reported a pre-tax loss of $145 million, compared to profit of $50 million in the first half of 2001. Revenues were off 6.8 percent to $1.93 billion. First-half 2002 results included $17 million in restructuring costs.
   First-half volumes rose 11.1 percent to 1.69 million TEUs, while revenue per TEU dropped 16.2 percent to $1,139.