CP Ships looking for new CEO

CP Ships looking for new CEO

CP Ships said it has started looking for a new chief executive officer, following the departure of Frank Halliwell in December.

   In a message to shareholders contained in the company’s annual report, just published, CP Ships chairman Ray Miles said 2004 was “the most challenging year” for the company. He cited the need to restate financial results after accounting errors, the resignation of Halliwell and the “unsatisfactory” performance of the company’s transatlantic business.

   However, Miles said CP Ships has taken corrective measures within its accounting, increased the share of its cargo volume generated by Asia to 23 percent of company-wide traffic, and made a successful logistics acquisition in Canada-based ROE Logistics.

   CP Ships also reiterated that it is ready for new takeovers of fellow container shipping lines, after a pause apparently caused by the long upturn in the container shipping industry.

   “With substantial debt capacity, undrawn bank facilities and strong free cash flow, we have significant investment capacity so we are ready to take advantage of opportunities when they arise,” the company said. “While market conditions remain strong, the scope for acquisitions that meet our criteria is limited.”

   Subject to current industry and market conditions continuing, CP Ships expects its net income in 2005 to “substantially exceed” net income earned in 2004.