Lower rates reduce PONL profits

A SIGNIFICANT reduction in average revenue rates resulted in reduced profits for P&O Nedlloyd which made an operating profit for 2001 of $87 million (2000, $201 million), while it incurred an operating loss of $8 million in Q4 2001, before restructuring costs of $12 million.
Average revenue rates fell by 5%
compared to Q3 and by 13% compared to Q4 2000. The company expects
that revenues in the industry
will be down in the first half of 2002 as a result of slower world trade growth and increased capacity,
and will therefore be accelerating its cost
savings programmes to achieve $350 million per annum by the end of 2003
compared to the $200 million previously announced.