P&ON reports loss despite volume growth

P&O NEDLLOYD Container Line reported an operating loss for the second quarter (Q2) 2002 of $46 million (R489m), compared to a loss of $66 million (R701m) in the previous quarter and an operating profit of $46 million (R489m) in Q2 2001. The decline in revenue rates, which dropped 15% compared to the same period last year, is cited as the major factor. The Q2 result was also adversely affected by rising fuel costs, which were significantly higher than in Q1 2002. This comes despite an increase in volume growth. In Q2 volumes were up 13% on Q2 2001, with particularly strong increases in the North America and cross trades.