P&O lowers guidance for ports
Shipping group P&O today warned that the downturn in spending in the UK and the effects of Hurricane Katrina would hit profits at its ports business.
The company said profits would be 2% to 3% below expectations after a 5% fall in volumes at its Southampton terminal in the third quarter.
The ports business was also hit by the closure of New Orleans after Hurricane Katrina, although growth rates remained strong in Asia.
P&O blamed the downturn at Southampton on weakness in UK consumer spending and the loss of a shipping service at the end of 2004.
But it forecast volume growth at its ports of 6% for the year.
Analysts had forecast pre-tax profits of around £182m (€268.8m) compared with £161m (€237.8m) last year, but this was scaled back to under £180m (€265.8m) following today’s trading update.
A P&O spokesman said: “The slower growth rate in the UK generally this year has meant that volumes have been lower.
“What we are seeing is the same as the situation reported on the high street in terms of consumer spending, which has been softer in the UK this year.”
