to $20.8 million and said it reaffirmed fiscal year earnings forecasts of at least $3 share.

The diversified Bermuda-based marine container lessor which operates passenger transport and hotels said it had a quarterly profit of $1.12 a diluted share, falling below analysts estimates of $1.16, according to First Call, a company that tracks such figures. In the same year ago period, the company reported a profit of $1.02, or $15.4 million.

The company said the 1997 period included a gain on sale of a hotel property of $5 million, or $0.26 per common share, so the year to year improvement is even greater if this gain is excluded. The number of basic average number of common shares in the quarter was up 4.9 million to 18.3 million compared to the same quarter a year ago due to the conversion of $108.8 million of convertible preferred shares to common shares in June 1998. Sea Containers said in a statement its management "has consistently said that full year 1998 diluted net earnings will be at least $3.00 per common share and this forecast is re-confirmed''.

"From the admittedly narrow perspective of the Sea Containers Group there are as yet no important trends which we would consider worrying in any of our operating divisions,'' Sea Containers president James Sherwood said in a statement.

"We expect to have an excellent 1998 and 1999 holds opportunities for further meaningful earnings growth,'' he added.

In 1997 the company had diluted net earnings of $2.07 per common share. Wall Street analysts' estimates for fiscal year 1998 is $3.03 a share, according to First Call. -- Reuters BUSINESS BUC