ACL’S NET INCOME FALLS 26% IN 4TH QUARTER

ACL’S NET INCOME FALLS 26% IN 4TH QUARTER    Atlantic Container Line faced a 26-percent decrease in net income for the fourth quarter of 2001, to SEK49 million ($5 million), as it reported lower volumes and revenues for its transatlantic operations.
   The net result compares with a net income of SEK66 million in the fourth quarter of 2000.
   Earnings before interest in the latest quarter were SEK74 million ($7 million), down from SEK113 million in the fourth quarter of 2000.
   Operating revenue dropped by 8 percent over the same period, to SEK745 million ($70 million), from SEK812 million in the same quarter in 2000.
   For the year, ACL reported a higher net income of SEK221 million ($21 million) for 2001, up 7 percent on the SEK208 million result of 2000.
   Earnings before interest totaled SEK370 million ($35 million) last year, up from SEK341 million in 2000.
   Operating revenue increased to SEK3.1 billion ($289 million), from SEK2.9 billion in the previous year.
   ACL said that it carried a total of 219,700 TEUs in 2001, 7.6 percent less than in the previous year.
   “North Atlantic total trade volume in 2001 fell for the first time in many years as a result of the North American recession and the continued sluggish European economies,” ACL said.
   However, ACL’s overall freight rates in 2001 were 4 percent higher than in 2000.
   “The transatlantic container markets started off slowly in 2001 and then worsened after the summer,” ACL commented. “However, many of the revenue gains made during the beginning of the year were maintained despite the market downturn.”
   The transatlantic carrier reported an improvement in the balance between its eastbound and westbound container flows, which had “a major role in reducing empty positioning expenses.”
   ACL said that it also benefited from the strong U.S. dollar.
   Commenting on trade prospects, ACL said that transatlantic trade volumes and freight rates are expected to continue to fall.
   “The company cannot continue to avoid the effects of a prolonged shipping recession fueled by vessel over-capacity and depressed trade volumes,” it said. ACL predicts that its performance in 2002 “will be well below that of 2001.”
   Total North Europe-U.S. trade container traffic dropped by about 4 percent both eastbound and westbound in 2001, the carrier reported. ACL’s vessel utilization fell to 70 percent last year, from 76 percent in 2000.
   ACL’s comments on the deterioration of the transatlantic container shipping market follow reports that several ocean carriers are considering ways to remove capacity from the over-tonnaged North Atlantic trade.
   According to ComPairData, the global liner shipping database, ocean carriers added 2 percent in vessel capacity to the north Europe/North America trade last year, despite the fall in cargo volumes.