A.P. MOLLER REPORTS FALL IN HALF-YEAR NET RESULTS

A.P. MOLLER REPORTS FALL IN HALF-YEAR NET RESULTS

   A.P. Moller, the expansionist Danish group, reported a
37-percent fall in the net result of its shipping activities for the first half of the
year, to DKr1.13 billion ($159 million).
    The result compared to a net profit of DKr1.78 billion in the first
half of 1998.
    The drop in net income for the group’s shipping activities was caused
largely by a DKr918 million ($130 million) charge in exchange rate adjustments.
    Before gains on disposal and special items such as exchange rate
adjustments, the result increased by 26 percent, to DKr1.38 billion ($195 million), from
DKr1.09 billion in the year-earlier period.
    Revenue from shipping activities rose by 2 percent, to DKr19.40 billion
($2.74 billion), from DKr19.11 billion.
    A.P. Moller reported more pronounced trends in the half-year results of
its "tankers and liners in partnership" subsidiary, one of the companies that
form the group’s shipping activities.
    Net result fell by 93 percent, to DKr55 million ($8 million), from
DKr853 million.
    Result before gains and special items increased by 51 percent, DKr587
million ($83 million), from DKr389 million.
    Revenue rose by 2 percent, to DKr18.83 billion ($2.66 billion), from
DKr18.50 billion.
    As usual, A.P. Moller did not release separate results for its
container shipping arm Maersk Line.
    The A.P. Moller’s first-half results are the first to include the
activities of new;y-acquired Safmarine Container Lines.
    A.P. Moller warned that the acquisition of the international container
business of Sea-Land Service, still awaiting regulatory approval, will affect the
year-long 1999 and 2000 results negatively. There will be "considerable non-recurring
expenses in connection with the implementation," but the takeover will result in
significant future synergies, A.P. Moller said.