P&O Ports’ throughput up 6%, reduces profit expectations

P&O Ports’ throughput up 6%, reduces profit expectations    Worldwide container throughput at global terminal operator P&O Ports rose 6 percent in the third quarter to 3.75 million TEUs, but the London-based operator has reduced its it full-year operating profit expectations citing weak consumer demand in the United Kingdom and a decline in European box volumes.
   During the third quarter, P&O Ports’ European volumes were down 5.2 percent to 985,000 TEUs, from 1.04 million TEUs in the same quarter last year. “Volume at Southampton was lower than 2004 due to further weakness in U.K. consumption but also following the loss of a service at the end of 2004,” P&O said.
   P&O Ports’ Asian box volumes in the third quarter were up 12.3 percent to 1.66 million TEUs. In the Americas region, volumes were up 11.2 to 614,000 TEUs, despite Hurricanes Katrina and Rita reducing volumes by about 25,000 TEUs. Australia/New Zealand volumes were up and 5.3 percent to 490,000 TEUs.
   “Tariff increases, agreed earlier in the year, and yield improvements have resulted in profit growth continuing to exceed volume growth,” the P&O parent company said in a trading statement. “However, on current trends it is anticipated that operating profit (including P&O’s share of joint ventures and associates operating profit) for the full year will be 2-3 percent below previous expectations. The majority of this reduction relates to the two U.K. terminals, where higher volumes had been anticipated,” P&O said.
   For the year to date, P&O Ports’ global throughput has improved 6.7 percent to 10.87 million TEUs, from 10.18 million TEUs after nine months last year.