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P&O braces itself as freight volumes lead to job losses

14th March 2002, Page 8
14th March 2002
Page 8
Page 8, 14th March 2002 — P&O braces itself as freight volumes lead to job losses
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Which of the following most accurately describes the problem?

• P&O's freight-shipping arm is predicting an ongoing squeeze on container volumes after blaming 1,000 job cuts on the economy, terrorism and foot and mouth. P&O Nedlloyd is bracing itself for reduced activity well into 2002. Chairman Lord Sterling of Plaistow expects supply to outstrip demand, forcing down freight revenues, and he does not expect an upturn before 2003.

Operating profit dropped nearly 80% to £58m last year—and in the final quarter the firm suffered a El3m loss, compared with a £20m profit the quarter before.

P8.1.0 Nedlloyd aims to stop the rot with plans to cut its costs by 1233m by the end of next year. The loss of 1,000 jobs out of a 9,000-strong workforce is designed to save just over £30m—about 175 jobs will be lost in the UK.

A P&,0 Nedlloyd spokesman says: "We are disappointed. Freight rates are the main issue and are under constant pressure. Volumes may pick up later this year or in 2003".

• P&O's Gold Logistics and Trans European arms recorded double-digit growth in their operating profits last year

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