Containers push P&O into the red

By ROBERT LEA
Updated:

 

LORD STERLING, chairman of P&O, warned of a 'nervous' global trading environment today as container shipping, the business it has been trying to extricate itself from for some time, sent the maritime group sinking into losses of £44m for the first half year.

P&O reported an across-the-board decline in results at its ports, logistics, P&O Nedlloyd cargo shipping joint venture and in its development property interests, saved only by a reduction in the losses being racked up by its UK ferry operations.

'The weakness in container shipping rates has been a major disappointment,' said Sterling. 'P&O Nedlloyd is a fine international company but there has to be further industry consolidation. Elsewhere we are making good progress, albeit in a nervous environment.'

The loss, which means the interim dividend is pegged at 4.5p, came after pre-tax profits in the same period last year of £90m. P&O's largest core business, international ports, saw operating profits fall 3% to £51m while cold logistics were down 18% at £7m.

As previously warned, P&O's share of Nedlloyd brought in losses of £47m. The highly-seasonal ferries business made losses of £10m against last time's £18m loss. An uneven profit profile in property saw profits there dive more than 60% to £20m.

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