P&O NEDLLOYD REPORTS 4TH-QUARTER LOSS, PLANS TO CUT STAFF

P&O NEDLLOYD REPORTS 4TH-QUARTER LOSS, PLANS TO CUT STAFF

   P&O Nedlloyd Container Line Ltd. reported a fourth-quarter net loss of $35 million, compared to a profit of $81 million in the fourth quarter of 2000.

   The company also said it will cut 1,000 employees as part of its efforts to reduce costs.

   The carrier saw an operating loss of $20 million for the quarter, compared to an operating profit of $96 million in the year-earlier quarter. The operating loss included $12 million in restructuring costs. Revenue fell to $1.00 billion, from $1.13 billion in the fourth quarter of 2000.

   The Anglo-Dutch carrier said the weaker results were due to a 'significant reduction in average revenue rates per TEU, which fell 13 percent to $1,209, compared to the fourth quarter of 2000.

   'Average rates have fallen a little further since the start of 2002 although there are tentative signs on some trades that they may have bottomed out,' the carrier said.

   Overall volumes for the fourth quarter were up 1.9 percent to 828,100 TEUs. Load factors fell to 77 percent, from 82 percent. North American volumes rose 7.8 percent to 250,600 TEUs, while Europe/Asia volume fell 6.9 percent to 269,000 TEUs. North/south and cross trades improved 5.9 percent to 308,500 TEUs.

   For 2002, P&O Nedlloyd reported a profit of $31 million, compared to $140 million for 2000. Operating income was $87 million, down from $201 million. Revenue improved to $4.13 billion, from $4.12 billion.

   Container volumes rose 4.7 percent to 3.18 million TEUs. North American volume rose 8.1 percent to 944,900 TEUs. Europe/Asia volumes slipped 1.1 percent to 1.07 million TEUs. North/south and cross trades volume rose 7.8 percent to 1.17 million TEUs.

   The carrier, in its drive to reduce costs, saw annualized savings of more than $200 million in 2001, ahead of its $180-million target. The reductions came in information technology, container management, fleet operations and procurement costs.

   P&O Nedlloyd has already announced additional cuts expected to result in an additional $200 million in savings annually, in 2002-2003. In addition, the reduction of 1,000 employees is expected to bring $50 million in savings.

   The company said the cuts are expected to offset anticipated reduced revenues due to the current economic slowdown, and the excess overcapacity issues.