P&O on target to meet profit expectations

P&O on target to meet profit expectations    London-based Peninsular & Oriental, parent company of P&O Ports, said it is on target to meet its pre-tax profit expectations for 2005.
   In the ports sector, P&O said upward trends reported in the first quarter have continued, with strong growth in China and India being offset by slower growth in the United Kingdom and Australia. Full year organic volume growth is now expected to be 8-9 percent.
   “Improvements in average revenue per unit are leading to operating profit growth exceeding organic volume growth, and this is expected to be the case for both the first half and the full year,” P&O said.
   P&O has recently adopted the new international financial reporting standards. Restated 2004 “underlying pre-tax profit” using the new accounting standards amount to '182 million ($331 million), up from the previously stated '170 million ($309 million).
   P&O said market expectations are also subject to adjustment regarding the potential sale of its 25 percent share in Royal P&O Nedlloyd to A.P. Moller-Maersk. P&O has already said in the event that the offer is made and the conditions satisfied it will accept the offer.
   A sale of P&O’s shareholding in Royal P&O Nedlloyd at euros 57 per share would result in proceeds of approximately euros 579 million ($702 million).
   P&O’s interim results for the six-month period ending June 30 will be announced on Aug. 11.