THE TURBULENCE in Far East economies has had no adverse effect on container giant P&O Nedlloyd, according to the company's third quarter results for 1997.
Volumes increased on its Europe-Asia trade during the period, and the important westbound leg, which accounts for the higher volume Asian exports as against the lower volume imports on the eastbound leg, was particularly strong, says the report.
The eastbound leg saw a slight reduction in volume but on forward bookings is now stable, with the pattern expected to continue into 1998.
The quarterly results show an increase of US$ 20 million in profit (before interest and other items, merger costs and tax), compared to the same quarter results in 1996 prior to the merger.
The report points out, however, that while there was a continuation in the trend towards stability in average revenue per teu, this was masked by the effect of currency, which had a modestly negative effect in Q3 compared to a modestly positive effect in Q2, and cargo mix, which was less favourable in Q3 than in Q2.
Generally, says the report, P&0 Nedlloyd's prospects are positive. Further progress will be made as more cost savings are achieved. The outlook for demand remains encouraging while the overall supply/ demand situation is forecast to come more into balance during 1998 and thereafter.
