CP SHIPS EARNINGS DROP SHARPLY

   CP Ships, the ocean shipping group owned by Canadian Pacific, said third quarter net profit fell 31.7 percent to C$24.3 million ($16.3 million).
   Operating income fell 24.5 percent to C$28.6 million (19.2 million),
while revenue rose 4.5 percent to C$705.4 million ($472.6 million).
   CP Ships’ shipping lines, Canada Maritime, Cast, Lykes, Contship
Containerlines and Australia New Zealand Direct Line, handled 354,000 TEUs in the third quarter, up 21.6 percent from the year-earlier period.
   Contship and ANZDL were acquired in late 1998.
   CP Ships blamed the income decline on deterioration of transatlantic
rates, the key trade lane for Canada Maritime and Cast. The company
expected planned westbound transatlantic rate increases to improve results.
   For the nine-month period, ending Sept. 30, CP Ships’ net income fell
57.4 percent to C$49.2 million ($33 million) on revenue of C$2.062 billion ($1.381 billion). Operating income fell 49.8 percent to C$62.1 million ($41.6 million.
   Container volume for the nine months rose 20.5 percent to 1.01 million TEUs.
   Through the nine months, Americana Ships, a 50-50 joint venture
established in early 1999, continued to restructure operations, seeking to reduce operating costs.