CP SHIPS EARNINGS, RATES INCREASED IN 1ST QUARTER

CP SHIPS EARNINGS, RATES INCREASED IN 1ST QUARTER

   CP Ships, the shipping arm of Canadian Pacific, posted a net income of Can $40 million ($26 million) for the first quarter, up 40 percent, as revenues increased due to higher freight rates.

   The net profit compares with a profit of Can $29 million in the first quarter of 2000.

   Operating profit in the latest quarter was Can $49 million ($32 million), up from Can $40 million in the year-earlier period.

   Revenues rose to Can $969 million ($625 million), from Can $899 million.

   CP Ships said container carryings for the quarter, at 437,000 TEUs, were unchanged, but average freight rates were 9 percent higher. The rate rise reflected the increases achieved during the course of last year and were similar to fourth quarter 2000 rates.

   CP Ships said the contribution from the North Atlantic trades was up. CP Ships subsidiaries Canada Maritime, Cast, Lykes Lines and Contship Containerlines have transatlantic activities. While transatlantic volume was down 6 percent due to a weaker North American import leg, freight rates continued to improve, CP Ships said.

   The Australasian trades’ profit was reduced by continued weakness in the U.S. trade. The performance of the Latin America services improved.

   The Asian trades made a slow start, but have now picked up and the new Asia/Europe service has started, the group said.

   CP Ships is one of the businesses that Canadian Pacific aims to hive off as an independent public company. David P. O’Brien, chairman, president and chief executive officer of Canadian group, said the reorganization is proceeding on schedule.

   “The results this quarter reinforce our decision that the time is right to split the corporation into five strong, publicly traded companies,” he said.