Nedlloyd Hedges Currency to Hold Up 1995 Results

In defense of the weak dollar, Nedlloyd Group of the Netherlands has hedged DfI500 million against further strengthening of the guilder and other currencies in 1995. Chairman Leo Berndsen said, “We have hedged the dollar short term, which should enable us to make at least the same result in 1995 as in 1994.”

Nedlloyd’s position underscores the complicated nature of shipping in which many companies are increasingly buying goods and services in strong currencies and still earning mostly in the weak dollar. Last year, Nedlloyd saw net profit turnaround to Dfl92 million, up from a loss of Dfl112 million in 1993. The turnaround occurred despite turnover, which was essentially flat, increasing just 3% to Dfl6.6 billion, up from Dfl6.5 billion.

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