P&O NEDLLOYD REDUCES DEFICIT IN FIRST QUARTER

P&O NEDLLOYD REDUCES DEFICIT IN FIRST QUARTER

   P&O Nedlloyd Container Line reported a narrower pre-tax loss of $29 million for the first quarter, compared to a deficit of $36 million in the first quarter of 1999.

   P&O Nedlloyd said that the first quarter of the year is traditionally the weakest and its latest quarterly result was affected by the increased cost of bunkers. Higher fuel costs had an adverse impact of $38 million, the Anglo-Dutch carrier said.

   The operating result for the first quarter was a loss of $14 million, as compared to a $22-million operating loss in the first quarter of 1999.

   Revenue rose by 8 percent, to $896 million, from $829 million in the year-earlier quarter. Volume carried increased by 6 percent, to 678,200 TEUs, from 639,200 TEUs and the average revenue per TEU was up by 2 percent, to $1,321, from $1,297 in the first quarter of 1999.

   P&O Nedlloyd said that it continues to expect “a significant improvement in profits in 2000,” provided bunker prices remain at current rates and world trade growth continues at present levels.

   The company said that it is making progress implementing a cost reduction program to cut costs by $100 million on an annual basis by the end of the year. P&O Nedlloyd also plans to reduce costs by $180 million on an annual basis by the end of 2001.

   On Tuesday, P&O Nedlloyd announced the resignation of its chief executive officer, Tim Harris.