Nedlloyd Announces Second Quarter Results.

ROTTERDAM, Netherlands--(BUSINESS WIRE)--August 19, 1999--

Royal Nedlloyd, an international leader in logistics services, today announced its second quarter results.

Highlights

-- Result on ordinary activities -23 million (1998: -2 million) -- Successful sale of European Transport and Distribution to

Deutsche Post -- Nedlloyd share in P&O Nedlloyd results in -18 million

(1998: 1 million)

Result and turnover

For Royal Nedlloyd, the result on ordinary activities amounts to -23 million (1998: -2 million) in the second quarter. The loss in the first half year amounts to -40 million (1998: -15 million).

The loss in the second quarter is mainly due to the disappointing developments at P&O Nedlloyd.

The result of the European Transport & Distribution sector falls a little short compared to the same period of last year. Mammoet Transport shows a higher result.

Concerning the cancellation of the sale of our interest in Martinair to KLM, the results of Martinair are included again under "other non-consolidated participations".

In the first half of 1999, a turnover (excluding P&O Nedlloyd) of 837 million was realised (1998: 796 million).

European Transport and Distribution

In the second quarter, much attention has been paid to the sale announced on 18 March of Nedlloyd ETD to Deutsche Post. This process was concluded successfully at the beginning of July.

This is the last quarter that Nedlloyd ETD will be accounted for by Royal Nedlloyd. Mainly due to margin pressure in the groupage activities in Germany, the operating result in this quarter falls short by 4 million compared to last year. For the first six months, an operating result of 12 million (1998: 16 million) was achieved. The turnover of 744 million, which was realised in the first half of 1999 reflects an increase of 4 percent compared to the same period in 1998.

Mammoet

In the second quarter Mammoet achieved an operating result of 7 million, 5 million higher than in 1998. The operating result in the first six months of 1999 amounts to 8 million (1998: 2 million). The improvement of the result is due mainly to favourable developments at Mammoet USA and improvements at Mammoet Engineering and Innovation.

The turnover of 93 million in the first six months of 1999 is 16 percent higher than in the same period of 1998.

Joint venture P&O Nedlloyd

Nedlloyd's share in P&O Nedlloyd in the second quarter amounts to -18 million (1998: 1 million). Over the first six months this is -34 million (1998: -16 million). P&O Nedlloyd's disappointing operating result of $-18 million (1998: $22 million) is mainly due to a drop in the average income per TEU by 9 percent compared with the second quarter 1998. Approximately 50% of this was caused by a decline in tariffs on the Atlantic and the north - south routes. Recent rate increases on the Pacific and the Far East services do not as of yet offer sufficient compensation for these unfavourable developments.

In the second quarter, P&O Nedlloyd carried 706.100 TEUs, which is 12 percent more than in the same period in 1998. This increase occurred mainly, however, on non-dominant routes with accordingly low rates.

With reference to the intensive preparations for the year 2000, the cost saving process in the second quarter was delayed. By now, a new and important cost saving programme has taken off.

For further details please refer to the separate press release issued jointly by Nedlloyd and P&O today.

Other non-consolidated participations

The share in the result of the other non-consolidated (mainly ECT and Martinair) participations in the second quarter amounts to 1 million (1998: 3 million). Over the first half this share is 0 million (1998: 5 million).

Both Martinair and ECT had a weak first half.

Interest income minus interest expense

The interest burden of 9 million is equal to that of the second quarter of 1998, after elimination of the Martinair interest income in 1998.

Outlook

After the completion of the sale of Nedlloyd ETD to Deutsche Post, the results of Royal Nedlloyd will be determined almost completely by the developments at P&O Nedlloyd.

In view of the uncertainties that are subsistent in container shipping, we presently do not give a prognosis on the result on ordinary activities for Royal Nedlloyd concerning 1999 as a whole.

On 6 September, as was announced earlier, the 4.25% subordinated convertible bond loan 1994-2001 will be redeemed earlier, which involves an amount of 263 million.

The book profit after the sale of Nedlloyd ETD for approximately 270 million will be accounted for in the third quarter. The net asset value per Nedlloyd share will thus arrive at nearly 45. We will continue to focus on decreasing the gap between the stock price and the net asset value per share. -0- Royal Nedlloyd Group is an international leader logistic services. Nedlloyd's shares are listed on the Amsterdam and Frankfurt Stock Exchanges and are traded in ADR form in the US (symbol RNLGY in the NASD OTC Market; each ADR is equal to one-half of an ordinary share). Nedlloyd ordinary shares may be accessed on Bloomberg under the symbol NLYN NA, on Quotron under NEDLN.EU and the Reuter Equities 2000 System under NYLN.AS. Additional information is available on Nedlloyd's home page: http://www.nedlloyd.com. -0-

                               Nedlloyd
                 Consolidated Profit and Loss Account

                            1999        1998       1999        1998
                             2nd         2nd        1st         1st
(x EUR 1 mln)               quarter    quarter    half year  half year

 Net turnover:

 - European Transport
    and Distribution          364        349        744        716

 - Mammoet                     51         46         93         80

                              415        395        837        796

 Operating result:

 - European Transport
    and Distribution            0          4         12        16

 - Mammoet                      7          2          8         2

 - Corporate overheads         -5         -4         -8        -8

                                2          2         12        10

 Share in the result of the
  P&O Nedlloyd joint venture  -18          1        -34       -16

 Share in the result of
  other non-consolidated
   participations *)            1          3          0         5

 Processing of adjustment
  Martinair share 1998,
   on balance *)                2          -          2         -

 Interest income minus
  interest expense *)          -9         -7        -18       -13

 Taxation
   -1          -1            -2              -1

 Result on ordinary
  activities after taxation   -23         -2        -40       -15

 Extraordinary result           0          0          0         0

 Minority interests            -2          0         -2         0

 Net result                   -25         -2        -42       -15

 Average number of
  outstanding ordinary
   shares (x1000)           22426      22310      22386     22415

 In euros per
  outstanding
   ordinary share:

- Net result                -1.11      -0.09      -1.88     -0.67

- Result on ordinary
   activities after
    taxation                -1.02      -0.09      -1.79     -0.67


 Capital expenditure in
  tangible fixed assets        16         22         30        38

 Depreciation                  12         12         24        24

 Number of staff at
  end of period                                   13552     13002
   of which employed in
    the Netherlands                                6619      6164

(*) In 1998 with regard to Martinair an interest received was processed concerning the purchase money anticipated at that time, and consequently no share is recognised in the result. As of 1999 the share in the Martinair result will again be recognised. The figures of the first quarter 1999 are adjusted retrospectively (effect on net result EUR -5 million). The comparative figures 1998 are not adjusted.

Figures unaudited