A.P. Moeller-Maersk posted a sharp drop in first-quarter net profit as inventory corrections in western economies caused shipping demand to normalize, pushing freight rates and volumes lower
on Thursday posted a sharp drop in first-quarter net profit as inventory corrections in western economies caused shipping demand to normalize, pushing freight rates and volumes lower.
The Danish shipping giant reported a quarterly net profit of $2.28 billion, down from $6.78 billion, as revenue fell 26% to $14.21 billion. A company-compiled consensus had seen net profit at $1.79 billion on revenue of $14.83 billion.Top news and in-depth analysis on the world of logistics, from supply chain to transport and technology.“We delivered a solid financial performance in a challenging market with lower demand caused by a continued destocking,” said Chief Executive Vincent Clerc.
“Visibility remains low for the remainder of the year and moving through this market normalization, we remain focused on proactively managing costs,” he said. Maersk said revenue at its shipping unit fell 38%, driven by lower volumes and rates as both Asia-Europe and trans-Pacific markets saw significant pressure in the quarter, driving an overall decrease of 9.4% in loaded volumes on the year.Maersk still expects full-year 2023 underlying earnings before interest, taxes, depreciation and amortization of $8 billion to $11 billion, underlying earnings before interest and taxes of $2 billion to $5 billion and free cash flow of at least $2 billion.
Its shipping unit is still expected to grow in line with the global container market of minus 2.5% to plus 0.5% in 2023.Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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