Virtually equal result Nedlloyd in first quarter.

ROTTERDAM--(BUSINESS WIRE)--May 12, 1999--

Main points first quarter 1999

-Result on ordinary activities EUR -12million (1998: EUR -13

million)

-Result European Transport and Distribution sector EUR 12 million

(1998: EUR 12 million)

-Nedlloyd share in result P&O Nedlloyd EUR -16 million (1998: EUR

-17 million)

Result and turnover

In the first three months of 1999 Nedlloyd achieved a result on ordinary activities of EUR -12 million (1998: EUR -13 million). In the European Transport and Distribution sector the result in the first quarter equals the one of the same period in 1998. At P&O Nedlloyd the operational results reflect a slight improvement. The turnover (excluding P&O Nedlloyd) of EUR 422 million is EUR 21 million (5%) higher than in the same period of 1998 (EUR 401 million).

European Transport and Distribution

The operating result of EUR 12 million equals the one in the first quarter of 1998. The results of most activities in the sector virtually equalled the one of last year. Nedlloyd Fashion Services realised a higher contribution to the operating result. The results of the groupage activities of Nedlloyd Unitrans fell a little short of expectations.

Mammoet 

The operating result of Mammoet amounts to EUR 1 million (1998: EUR 0 million) in the first three months of this year. The turnover of EUR 42 million is well over 20% higher than in 1998.

P&O Nedlloyd joint venture

Nedlloyd's share in the result of P&O Nedlloyd amounts to EUR -16 million ( 1998: EUR -17 million).

Compared to the first quarter of 1998 the operating result of P&O Nedlloyd improved by 4 million US dollars. The pre-tax result amounts to US dollar -36 million (1998: US dollar -39 million). The average revenue per TEU of 1,297 US dollars is 8% lower compared to the same period in 1998 (1998: 1,417 US dollars). In the first quarter of this year 639,200 TEUs were carried, 17% more than in the first quarter of 1998 (546,900 TEUs). Excluding the volume of the Blue Star Line, acquired 1 April 1998, the rise runs to 14%.

From the development in the transport flows a careful conclusion may be that the Asian crisis seems to be over its worst. The exports to Asia recently are on the increase again, whereas rates for that matter are at a level considerably lower than the first quarter of last year. On the other hand the rates from Asia rose in the second half of last year. Expectations are that the rates will further improve in the course of the year.

(For further details concerning P&O Nedlloyd we kindly refer to P&O Nedlloyd's website.

Other non-consolidated participations

The share in the result on the other non-consolidated participations (mainly ECT) amounts to EUR 1 million in the first quarter (1998: EUR 2 million).

Interest income minus interest expense

The interest burden of EUR 6 million equals the one of the corresponding period in 1998.

Allocation cash and bank balances from divestments

Following the 18 March announcements concerning the allocation of the remaining cash and bank balances resulting from selling various companies, Nedlloyd announces today, in response to questions, that these balances will not be used for buying out the P&O interest in P&O Nedlloyd. A restricted amount may well be spent to effect a possible next strategic step by P&O Nedlloyd.

Should an entirely alternative expense opportunity occur that may be attractive to shareholders, then Royal Nedlloyd will present this to its shareholders.

If, or in sofar, the financial means will not be spent on the above mentioned allocations these will, in principle, be at the disposal of its shareholders. We aim to provide clarity as to the final allocation of these funds before the end of 1999. We care to point out that various transactions still have to be approved by "Brussels."

Outlook

The results of Royal Nedlloyd in 1999 will be determined mainly by the developments at P&O Nedlloyd. Given the uncertainties inherent in the shipping sector, it is too early now to project any result for P&O Nedlloyd and, therefore, for Royal Nedlloyd for 1999 on the whole. After a successful merger, the competitive position of P&O Nedlloyd is relatively strong, on the basis of which we face the future of this company with confidence.

                               Nedlloyd
                 Consolidated Profit and Loss Account

                                            1999             1998
                                        1st quarter      1st quarter

(x Euro 1 million)

Net Turnover:
 European Transport and Distribution          380              367
 Mammoet                                       42               34
                                              ---              ---
                                              422              401
Operating result:
 European Transport and Distribution           12               12
 Mammoet                                        1                0
 Corporate Overheads                           -3               -4
                                              ---              ---
                                               10                8

Share in the result of the P&O
 Nedlloyd joint venture                       -16              -17

Share in the result of other
 non-consolidated partcipants                   1                2

Interest income minus interest expense         -6               -6
Taxation                                       -1                0
                                              ---              ---
Result on ordinary activities after taxation  -12              -13
Extraordinary result                            0                0
Minority interests                              0                0
                                              ---               ---
Net result                                    -12               -13


Average number of outstanding
 ordinary shares (x1000)                   22,310            22,520
In euros per outstanding ordinary share:
  Net Result                                -0.54             -0.58
  Result on ordinary activities after
   taxation                                 -0.54             -0.58

Capital expenditure in tangible
 fixed assets                                  14                16

Depreciation                                   12                12

Number of Staff at end of period           13,840            12,950
of which employed in the Netherlands        6,675             6,257

Figures unaudited

P&O Nedlloyd Results: First Quarter 1999

The attached information sets out the financial results, trade
statistics and key points for P&O Nedlloyd Container Line Limited for
the first quarter 1999.  In general terms it shows that:

-    compared to Q1 1998, the operating results inproved by $4 million
     and the loss before tax by $3 million;

-    despite Q1 being the weakest quarter of the year, volumes
     increased by 14% on a like for like basis between Q1 1998 and Q1
     1999;

-    there was some further reduction in revenue rates from Q4 1998 to
     Q1 1999 but this was largely due to a change in the mix;

-    the Asian position has improved significantly; and

-    the outlook continues to be positive compared to last year.

                         RESULTS & STATISTICS

                                   Q1 1999             Q1 1998
Throughput (teus)(a)

Europe/Asia                        238,500             207,500

North/South & Cross Trades         219,800             207,600

North America                      180,900             131,800

Total                              639,200             546,900

Average revenue per teu              1,297               1,417

Revenue                                829                 775

Operating profit                       (22)                (26)

Interest, minorities and other items   (14)                (13)

Profit/(loss) before tax               (36)                (39)


(a) In Q1 1999 this includes approximately 18,000 teus arising from the
Blue Star acquisition which was completed in 1 April 1998.  They fall
largely in the North America trades.

Notes:

1. Teu = twenty four equivalent unit.  This is the standard size of
container and is a common measure of capacity in the container
business.
2.  All financial figures are US$ million except average revenue per
teu which is US$.
3. It is important to note that a change in average revenue per
teu does not necessarily equal a change in profit contribution.
Average revenue per teu is calculated equally across all trades and
products. It makes no allowance for cargo mix, relative volumes on
different trades or additional elements which are raised and paid for
in local currency.

KEY POINTS

1. The operating result in what has historically been the weakest quarter of the year improved from a loss of $26 million in 1998 to a loss of $22 million in 1999. The loss before tax decreased by $3 million to $36 million.

2. Throughput increased by 17% compared to the same quarter last year, of which 3% resulted from the Blue Star acquisition on 1 April 1998. The main increase has been in the North America trades where P&O Nedlloyd has been increasing its market share in the Pacific. The equivalent increase in capacity was 16%

3. Average revenue per teu has fallen by 8% compared to Q1 1998 and by 3% compared to Q4 1998. The majority of the 3% fall results from a change in mix and has to be considered in conjunction with the significant increase in throughput. The key feature has been a marked improvement in flows into Asia. Although welcome in itself in that it has largely obviated the need for repositioning empty containers, these are the non-dominant, i.e. lower yielding, legs of the trades. Conversely, the growth in Asian exports to Europe has not matched the high levels of Q1 1998.

4. In general terms the rate development on the Europe/Asia trades has been largely as expected. Rates have been going up on the dominant, westbound, legs and have now stabilized eastbound albeit at a low level. There are good prospects for further improvement in both directions. There has been some erosion on the North/South trades as a result of some market weakness, e.g. Brazil, and increased competition. The North America trades covering the Pacific are improving, although the recent eastbound increase will only be reflected from the second half of 1999 onwards, while those in the Atlantic have fallen with further deregulation and new entrants.

5. With the weakest quarter completed, the outlook continues to be positive. Much depends on the strength of the main Western economies since their propensity to import has enabled the recent rate increases on the dominant Asian export legs to be achieved with the prospect of more to come. Further consolidation is taking place. The demand/supply levels continue to show a marked improvement with forecasters expecting demand in 2000 to grow by 6.5% and supply by only 3.9%, the first time in five years that the growth in demand will have exceeded the growth in supply.