could be about $100 million, or $9 per common share, compared with net income in 1994's second quarter of $10 million or $0.60 per common share.

The sale of its Wightlink subsidiary for $160 million on June 1 was largely responsible for the improvement.

The company said that for the first six months of 1995, net income would approximate $96 million or $8 per common share, compared with about a $7 million profit and a small loss on common shares in the first half of 1994.

The company just held its annual general meeting in New York and said in a statement that its main earnings period is the third quarter, due to the seasonality of its ferries and hotels businesses.

If a sale of a hotel, now under negotiation, takes place this year, the company said that its earnings on common shares for 1995 would approximate the current common share price.

The sale of Wightlink has increased common shareholders' equity from approximately $140 million to $235 million, up from $13 to $21 per common share.

President Mr. James B. Sherwood, said the company intends to replace the earnings lost as a result of the Wightlink sale, after taking into account interest savings, with a new ferry service planned to be introduced later this year in Venezuela, in a joint venture with the established ferry operator, Conferry, and by the introduction of the first of its new generation of SuperSeaCats, scheduled for delivery later this year.

Mr. Sherwood also said the company plans to submit tenders to acquire two of the British Rail's operating divisions, which are scheduled to be privatised early next year.

Mr. Robert S. Ward, senior vice president, container division, said significant progress has been made in raising container lease rates, helped by the rising cost of new containers, due to higher steel, wood and aluminium prices.

The entire $160 million of the Wightlink sale has been applied to debt reduction in order to reduce floating rate debt costs.

The company is near production of new silo, insulated and pallet-wide containers. He said return on investment on all specialised containers was improving.

Vice president Mr. David Benson, who is in charge of ferries and ports, said that the impact of the Channel Tunnel on Hoverspeed's profits this year would likely reduce them by about $3 million from a record $8 million a year ago.

But he said the shortfall could be made up by better results from the company's's Scotland and Swedish services and improving results from the Isle of Man Steam Packet Company, in which the company holds a 43 per cent interest.

Mr. Simon Sherwood, vice president, leisure division, said three hotels were earmarked for sale with the company maintaining the management of two of them.

It was also likely that an existing hotel, a new Johannesburg hotel and a river cruise ship in Burma would be acquired to replace the hotels being sold.

Chief financial officer, Mr. Michael Stracey, said the company has no immediate plans to issue any publicly traded debt instruments or to sell equity, however, he did not rule out the issuance of some equity in part payment for asset purchases.

He indicated that the stability of the container leasing industry was such that new methods of container finance are emerging and these are being explored by the company.

A date is still to be set for the calling of the company's $2.10 series of preferred shares in whole or in part. A timetable is to be set before year's end.