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.