SEA CONTAINERS REPORTS FALL IN 2ND-QUARTER RESULTS

SEA CONTAINERS REPORTS FALL IN 2ND-QUARTER RESULTS

   Sea Containers Ltd., the diversified container leasing and leisure industry group, reported a 55-percent drop in group net income for the second quarter, to $6.2 million, caused largely by a sharp fall in results from container leasing activities.

   Group earnings before finance costs decreased 9 percent, to $52.1 million, from $57 million in the second quarter of 2000. Earnings before financial costs from container activities plunged 41 percent during the same period, from $14.5 million to $8.6 million. Earnings from leisure operations decreased from $21.9 million to $20.8 million. Results from passenger transport increased from $20.4 million to $22.2 million.

   Sea Containers blamed two adverse factors for the lower results. First, the company said the slowdown in world trade has affected its container operations. Second, the company said the foot and mouth epidemic hurt tourism in the United Kingdom, where it operates passenger transport services.

   Sea Containers had total revenue of $326.4 million in the second quarter, a drop of 7 percent. Revenue from container operations was $33.6 million in the latest quarter, down by 19 percent.

   For the six-month period ended June 30, Sea Containers reported net earnings of $7.1 million, up from $6 million in the same period last year. Total revenue for the first half of the year was $618 million, down from $629 million.

   Earnings before finance costs from container leasing during the six-month period were $19.5 million, down 29 percent from the $27.3-million profit earned in the year-earlier period.

   In a separate development, Sea Containers has filed a statement with the U.S. Securities and Exchange Commission advising that it intends to sell 5 million class A common shares in its 63-percent-owned luxury hotel subsidiary Orient Express Hotels Ltd.