CP SHIPS SEES FLAT 4Q INCOME, LOWER ANNUAL RESULT

CP SHIPS SEES FLAT 4Q INCOME, LOWER ANNUAL RESULT

   CP Ships, the liner shipping arm of Canadian Pacific, reported a flat income for the fourth quarter of 1999 and a 44-percent drop in full-year net results.

   The net income for the latest quarter amounted to C$36 (US$25 million), the same as in the fourth quarter of 1998.

   Operating income for the quarter increased, to C$50 million (US$34 million), from C$42 million.

   Revenue decreased to C$737 million (US$505 million), from C$765 million.

   CP Ships said that rates dropped in the North Atlantic trade, but the company cut its costs in the second half of last year.

   For the year, net income dropped to C$85 million (US$58 million) from C$151 million in 1998.

   Operating income decreased by 28 percent, to C$129 million (US$88 million).

   Revenue for the year rose by 6 percent, to C$2.8 billion (US$1.92 billion), as CP Ships carried 1.37 million TEUs in 1999, 18 percent more than

in the previous year.

   In December, CP announced that it agreed to buy the remaining 50 percent of the Americana Ships joint venture from Mexico’s Transportacion Maritima Mexicana.

   CP Ships is the parent company of Canada Maritime, Cast, Contship Containerlines, Australia-New Zealand Direct Line, Lykes Lines, Montreal Terminals and, through Americana Ships, of newly-acquired TMM Lines and Transportacion Maritima Grancolombiana.