to 80 percent higher than those in 1997, and forecast earnings per share of $3.25 to $3.75 (1997: $2.07).

And president James B. Sherwood noted that the company was in the midst of a major increase in sustainable operating profits and was now less reliant on gains on sales of assets than it had been in the past.

He said the new GE Seaco joint venture with GE Capital Corporation could add up to $1 per common share to Sea Container's basic earnings.

He cautioned, however, that it usually takes longer to achieve economies from business combinations than expected. The joint venture has been operational since May 1. Sea Containers is a marine container lessor, and, passenger transport and hotels operator.

The Great North Eastern Railway's earnings at the end of May were running $10 million above those of the prior year period while ferry and port income is slightly ahead. Mr. Sherwood expects improved performance from ferry and port operations to be sustained.

The firm's leisure business was forecasting a ten to 15 percent improvement, excluding the gain on the sale of a hotel property in 1997.

The company is projecting no hotel sales in 1998, but there is a plan to acquire eight properties and build three more.

Capital investment in this division may approximate $87 million this year, with one third being spent on capital improvements to existing hotels, and the balance on the acquisition of three European hotels.

They include the $25-million purchase of Quinta do Lago Hotel, which is expected to close this week or next.

Meanwhile, the company's Venice Simplon-Orient-Express tourist train operations are currently showing a $4-million increase in bookings this year over last.

Mr. Sherwood said the firm's interest costs in 1998 would rise by about $9 million over 1997.

Capital expenditure for the year will total about $200 million, which includes the $87 million hotel expenditure and $50 million for new containers, which is half GE Seaco's investment foreseen for this year.

There is also the $13 million of equity investment in GE Seaco and some $50 million for passenger transport, the largest element of which is the purchase of the new "Ben my Chree'' ro-pax ship for the Isle of Man Steam packet Company.

The Sea Containers board of directors, at an annual general meeting on Monday, agreed to redeem all outstanding $4.00 convertible cumulative preferred shares at $51.60 per share on July 3.

Redemption will be in cash, including dividends accrued to the redemption date, although holders may convert each such share into about 1.73 Class A common shares, or 1.73 Class B common shares, with the right to convert expiring June 26.

The annual dividend rate was also increased 30 percent. Class A common shares rose from 77 cents to a dollar, while Class B shares rose from 70 cents to 90.9 cents, effective with dividend payments payable August 20.

BUSINESS BUC