May 10, 2005

Strong first quarter for CP Ships

CP Ships Limited today announced unaudited operating income of $29 million for the first quarter 2005, more than double first quarter 2004. Net income was $15 million against $3 million. The quarterly dividend has been increased from $0.04 to $0.06 per share.

"The strong finish to 2004 has continued into 2005 with a solid performance in our seasonally weak first quarter," said Chairman Ray Miles. "Our aim to improve freight rates in 2005 is off to a good start, outweighing the adverse impact of lower volume due mainly to schedule delays and service restructuring," he added. "TransAtlantic operating profit was higher with first quarter freight rates continuing to improve upon the 8% increase achieved in fourth quarter. Australasia results were stable with higher freight rates offsetting lower volume. Latin America results were strong, building on the freight rate increases achieved last year. In Asia, Asia-Americas volume was softer than we expected, although freight rates were largely unchanged, when usually they decline in the seasonally weaker first quarter."

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