Bermuda-based Sea Containers made a loss of $6 million for the first quarter of 2002, in what the company described as seasonally the worst period of the year - adding that the results would not be indicative of the year as a whole.

The result compare with a net profit of $0.9 million for the same period last year, but that figure included profits from the sale of part of the company, which is a passenger transport operator, marine container lessor and leisure industry investor.

"The first quarter is the seasonally worst period of the year with many ferry services suspended, hotels closed for the winter and container demand at its lowest ebb due to factory closings and lower consumer demand following the Christmas season," the company said.

"The company's leisure division was exceptionally affected by the terrorist attacks of September 11, 2001 and major devaluation's of the South African Rand and Brazilian Real."

Net income in the first quarter of last year benefited from a $15.2 million gain on the sale of port assets.

Revenue for the first quarter of 2002 was $272 million compared with $291 million in the prior year period. The prior year's revenue included the gain on sale of port assets.

James Sherwood, president of Sea Containers, said that first quarter results would not be indicative of full year results.

He added that operating profits from passenger transport operations, the company's largest segment, were up $5 million over the first quarter of 2001, excluding the port assets sale.

Earnings from the marine container leasing business after interest were $1.6 million better than in the year earlier period.

In the leisure segment, represented by Orient-Express Hotels Ltd., the company's 60 percent owned subsidiary, revenue for each occupied room was down 12 percent compared with 2001, while in the fourth quarter of 2001 it was down 17 percent from the prior year, indicating good progress in recovery from September 11th, Mr. Sherwood said.

He said that its rail subsidiary, GNER, had a mediocre first quarter with passenger levels showing no increase over the first quarter of 2000. There were many delays caused by the infrastructure provider, Railtrack Plc and a series of strikes on connecting railways, he added.

Earnings were sustained largely through penalties paid by Railtrack and insurance claims. The company has a large claim against Railtrack and settlement discussions are scheduled to be held between Mr. Sherwood and the chief executive of Railtrack before the end of May.

The company also owns ferries, container leasing and the Orient Express Hotels, which has made four acquisitions since January 1.

The company said it expected September 11th to cause a decline in prices for properties in step with reduced earnings, while at the same time it anticipated room levels to reach pre-September 11 levels by the third quarter.

Mr. Sherwood said that Sea Containers was reducing its shareholding in Orient-Express Hotels by selling blocks to long term investors.