IMPROVED TERMINALS RESULTS FAILS TO BOLSTER P&O GROUPÆS EARNINGS
Despite improved results from its terminal operations, the P&O Group reported a net loss of '274.8 million ($440 million) in 2002, due largely to losses from container shipping and the disposal and acquisition of logistics operations.
The P&O Group's 2002 result compares to a net profit of '23.7 in 2001. The group showed an operating profit of '151.5 million ($242.5 million) for 2002, compared to '178.6 million in 2001. Group turnover improved 8.1 percent to '2.68 billion ($4.28 billion).
The group's result from P&O Nedlloyd, it's 50-50 joint venture container line, 'showed a deterioration of '108.4 million ($173.5 million).'
'Our top priority is our commitment to reduce our investment in our joint venture company, P&O Nedlloyd,' the group said.
Exceptional items in the group's 2002 results showed a loss of '144.9 million ($232.0 million), of which '98.4 million ($157.5 million) was attributed to the sale of Contract Logistics in December to Wincanton plc. Exceptional items also included about '26 million ($41.6 million) for closing of several ferry routes and sale of property related businesses.
P&O Ports generated an operating profit of '116.8 million ($186.9 million), up 1.5 percent. Operating profit from container terminals increased 16 percent to '98.5 million ($157.6 million). Throughput increased 23 percent, compared to 21 percent in 2001.
The group invested about '75 million in developing existing terminals, primarily in Australia, New York and Southampton.
P&O Group's ferries division saw an operating profit of '13.7 million ($21.9 million), compared to '1.2 million in 2001. The group restructured its ferries operations in 2002, acquiring Stena Line's 40-percent shareholding in P&O Stena Lien for about '152 million in August.
Contract Logistics achieved turnover of '793.3 million ($1.27 billion), up 6.4 percent from 2001. Operating profit was '12.0 million, down from '15.9 million in 2001.
Cold Logistics saw operating profit fall 30.6 percent to '12.5 million ($20 million) in 2001. The group acquired assets from ProLogis for $70 million in October, expanding Cold Logistics operations in the Texas and California markets.