Global slowdown docks P&O profits

Robert Lea12 April 2012

THE dive in world trade sent profits at shipping group P&O into reverse, with its P&O Nedlloyd containers venture falling into losses in the final months of 2001.

Chairman Lord Sterling is holding the dividend at 13.5p a share. He warned of continued heavy weather on the economic front in the first half of this year, but promised a 'significant improvement' in the group's other businesses for 2002.

P&O Nedlloyd's results took the shine off continued growth from the bulk of the group's operations in ports and logistics. The unit sustained a fourth-quarter loss of £24m, reducing profit for the year in the business by two thirds to £22m. Group wide operating profits for 2001 tumbled by 25% to £273m. Sterling said the group remained committed to finding an exit route for its exposure to P&O Nedlloyd, which today said it would axe 1,000 jobs worldwide.

While the overall profit fall also reflected the group's property disposal programme, its British ferries business slipped into a £1m loss against a £20m profit in 2000.

The cross-Channel P&O Stena venture increased profits by 13% to £25m but the North Sea and Western Channel services posted losses.

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