SWIRE EXPECTS CONTINUED GROWTH THIS YEAR

  Swire Pacific Ltd &lt;SWPC.HKG> expects
  continued growth in all divisions this year though it sees
  problems in the marine sector, chairman Michael Miles said.
      He told reporters:"1987 has started well for Cathay Pacific
  Airways which looks forward to another good year... Swire
  Properties expects further good results both from properties
  under development for sale and from its investment property
  portfolio."
      He did not give any specific projections for earnings. The
  company earlier reported 46 pct higher 1986 net profits at 1.78
  billion H.K. Dlrs from a year ago.
      Swire also had an extraordinary profit of 1.38 billion dlrs
  mainly from the sale of a 15.25 pct interest in Cathay Pacific
  Airways Ltd &lt;CAPH.HKG>.
      Miles said the company will use the money to develop its
  business, primarily in Hong Kong.
      Swire's stake in Cathay was first reduced to 54.25 pct from
  70 pct when Cathay was publicly floated, and then cut to 50.25
  pct when Cathay issued new shares amounting to 12 pct of the
  enlarged capital to the state-owned &lt;China International Trust
  and Investment Corp>. Cathay last week reported its 1986
  profits rose to 1.23 billion dlrs from 777 mln a year ago.
      Miles said despite last year's rapid expansion in Cathay's
  flights and fleet, load factor is still holding up at 70 pct.
      He said Cathay's growth last year was the result of "a
  marginal increase in the revenue load factor coupled with
  savings in fuel costs."
      "At present fuel prices are stable and will remain stable
  for the rest of this year," he said, "though there might be a bit
  of increase later this year.''
      Miles said Swire is not abandoning its offshore oil service
  operations, even though the marine sector is generally
  depressed. "Obviously the marine industry is not getting any
  better," he said.
      The real estate market remained strong and Swire last year
  revalued its property portfolio up 634 mln dlrs compared with
  an increase of 864.4 mln dlrs the previous year.
      Miles said he expects the property market to remain firm
  but said the firm has no available land for a major housing
  project such as its Taikoo Shing development on Hong Kong
  island now near completion.
      He said the company's 50 pct unit &lt;Hongkong United Dockyard
  Ltd> is negotiating with the government for the development of
  an existing petroleum storage depot into a major housing
  estate. "But it's not as big as Taikoo Shing," he said.
  

