P&O NEDLLOYD: “THE WORST OF THE DOWNTURN IS BEHIND US”

P&O NEDLLOYD: “THE WORST OF THE DOWNTURN IS BEHIND US”

P&O NEDLLOYD: “THE WORST OF THE DOWNTURN IS BEHIND US”

   P&O Nedlloyd Container Line, the Anglo-Dutch mega-carrier, said that it is cautiously optimistic about its future financial results.
   P&O Nedlloyd, which recently reported a large pre-tax loss of $67 million for the third quarter of 2002, said that improving revenue rates and continuing strong volumes “have provided the basis for the most positive outlook for some time.”
   The carrier reported progress on its cost-cutting programs. It reduced costs by $250 million on a yearly basis during 2002, as planned, which will benefit 2003 results.
   Volume growth and other factors “led to the cautious optimism that the worst of the downturn is now behind us,” the shipping group said.
   However, P&O Nedlloyd warned that high bunker prices and some financial impact from the recent U.S. West Coast labor dispute in October may affect its fourth-quarter results. The company also referred to possible over-capacity in 2003.
   The global container shipping industry has been hit by a serious cyclical downturn since the second half of 2001. Most industry analysts expect over-capacity pressures to lessen in 2003 and 2004.