ROTTERDAM, The Netherlands, March 7, 2002 (PRIMEZONE) -- Royal Nedlloyd:
HIGHLIGHTS
2001
- Result on ordinary activities Euro 6 mln (2000: Euro 50 mln). - Earnings per share Euro 0.27 (2000: Euro 5.96). - Proposed cash dividend Euro 1 per share.
Fourth Quarter 2001
- Result on ordinary activities Euro - 19 mln (2000: Euro 32 mln). - Share in the result of P&O Nedlloyd Euro - 21 mln (2000: Euro 43 mln). - Share in the result of Martinair Euro 3 mln (2000: Euro - 10 mln).
Result
For the full year 2001 Nedlloyd achieved a result on ordinary activities of Euro 6 mln (2000: Euro 50 mln). The decrease in the result of Euro 44 mln is due in particular to P&O Nedlloyd, which, with an operating result of US $ 87 mln, achieved a considerably lower result than in the comparable period last year (2000: US $ 201 mln).
The share in the result of Martinair improved to Euro - 3 mln (2000: Euro - 22 mln).
In the fourth quarter Nedlloyd achieved a result on ordinary activities of Euro - 19 mln (2000: Euro 32 mln).
Joint Venture P&O Nedlloyd
In 2001 P&O Nedlloyd achieved an operating result before interest and taxation of US $ 87 mln (2000: US $ 201 mln).
In the fourth quarter P&O Nedlloyd's operating result before interest and taxation amounted to US $ - 20 mln, a decrease of US $ 116 mln compared to the fourth quarter of 2000.
The net result for the entire year 2001 amounted to US $ 21 mln (2000: US $ 129 mln). In the fourth quarter a net result was achieved of US $ -37 mln (2000: US $ 77 mln).
The decline in the result is explained in particular by the clear slow-down in container liner trade growth combined with an increase in capacity.
These unfavorable conditions were partly offset by continued cost savings and lower fuel costs.
Growth in demand in the container liner trade is closely connected with developments in world trade.
P&O Nedlloyd carried 828,000 TEUs in the fourth quarter, almost 2% more than in the same period of 2000. For the year as a whole 2001 liftings rose by 4.7%.
Compared to the fourth quarter of 2000 average revenue per TEU dropped by 13%.
For the full year 2001 average revenue fell by 4.2% compared to 2000.
After the successful conclusion of the US $ 180 mln cost savings program P&O Nedlloyd announces it will accelerate the previously announced US $ 200 mln cost savings program, and expand it to an annualized US $ 350 mln in savings by the end of 2003.
For the full year 2001 the share of Nedlloyd in the result of P&O Nedlloyd was Euro 62 mln lower than in 2000 (2001: Euro 8 mln, 2000: Euro 70 mln).
The share in the result amounted to Euro - 21 mln in the fourth quarter against Euro 43 mln in the same period of 2000.
(For further details on P&O Nedlloyd we refer to the separately issued press release).
Martinair
Martinair closed 2001 with an operating result of Euro - 1 mln (2000: Euro - 34 mln).
Results improved greatly over 2001.
The measures taken as part of the "Red Alert" program have contributed significantly here.
This enabled Martinair to achieve substantial improvements to both capacity and efficiency.
Furthermore, the fall in jet-fuel prices contributed to the improved results.
The operating result for 2001 includes a positive effect stemming from a change of accounting standards related to major aircraft maintenance for an amount of Euro 9 mln. This change in accounting standards has been made to comply with The International Accounting Standards (IAS). For comparison purposes, the 2000 figure has also been adjusted for this reason (effect Euro 13 mln).
For the full year the Nedlloyd share in the result of Martinair amounted to Euro -3 mln (2000: Euro - 22 mln). For the fourth quarter the share in the result amounted to Euro 3 mln (2000: Euro - 10 mln).
(For further details we refer to the press release separately issued by Martinair).
Dividend Policy
Taking into account the company's liquidity position, a cash dividend of Euro 1 per share is proposed. At the current price level of approximately Euro 16 this implies a dividend return of well over 6%. Since the profit is insufficient to pay this dividend, it will be proposed to the shareholders to charge this payment against the reserves.
Share Buy Back Program
Royal Nedlloyd concluded its share buy back program in November 2001, purchasing a total of 1.9 mln of its own shares at an average price of Euro 13.90. Including the shares purchased earlier for the employee stock option plan, Royal Nedlloyd has repurchased 9.83% of its outstanding share capital.
Royal Nedlloyd will make a proposal to cancel the purchased shares, excluding those necessary to cover the employee stock option plan of 1998 (approximately 170,000), at the General Meeting of Shareholders, to be held on May 8, 2002.
Any additional stock repurchases will be considered if appropriate circumstances arise.
Outlook
Due to the uncertainties in the world economy, we will not give a concrete forecast on our results for 2002.
Generally the present slow growth in world trade is expected to continue during the first half of 2002. The increase in fleet capacity will continue to negatively influence the rates across the container shipping industry. Consequently in the first half of 2002 the company will be in a loss.
Note on behalf of the editors:
Royal Nedlloyd is an international logistics services company with 50% participations in both P&O Nedlloyd and the airline company Martinair.
Link to press release with annual figures: http://reports.huginonline.com/851202/100567.pdf