P&O REPORTS BETTER INTERIM RESULTS WITH EXCEPTION OF CARGO SHIPPING

   Peninsular and Oriental Steam Navigation Co. reported increases in profits from its core divisions for the first half of the year, with the exception of liner and bulk shipping businesses P&O Nedlloyd and Associated Bulk Carriers.
   Group operating profit rose by 16 percent, to '260 million ($417 million), from '224 million in the first half of 1998.
   The group’s core divisions – cruise shipping, ferries and ports/logistics – reported large increases in profits.
   By contrast, cargo shipping activities, now considered as non-core businesses by the group, saw operating losses widen to '24 million ($38 million) in the first half, from '5 million in the year-earlier period. The P&O group’s loss from its 50-percent share in P&O Nedlloyd was '13 million ($21 million), compared to '2 million deficit in the first half of last year. Associated Bulk Carriers returned a deficit of '11 million ($17 million) from its bulk shipping business, as compared to losses of '3 million in the same period of 1998.
   The ports/logistics division had a half-year operating profit of '42 million ($68 million), up 19 percent on the '36 million profit posted in the first half of last year.
   P&O said that it has started port operations at Nhava Sheva, India, and moved into existing port businesses at Surabaya, Indonesia, and ITO Corp., U.S.