P&ON increases profits

P&O NEDLLOYD recorded a substantial increase in profits and significantly improved its cost base during the fourth quarter and the full year financial results for 1998.
Operating profit increased by 28% from US$ 43-million
(R266-m) to US$ 55-million (R341-m) in the fourth quarter, and headline profit from US$ 33-million (R204-m) to US$ 39-million (R242-m).
During the same period the increased throughput and cost savings more than offset reduced rates, higher interest charges and problems associated with the situation in Asia, which seems to be improving gradually, SA m.d. John Turner told FTW.
We're starting out in a much better position than last year, with the merger process behind us and a better cost
base, Turner said. With further improvements in unit costs, a better supply/demand position going forward and greater industry consolidation, there is considerable upside potential, he said.