A.P. Moeller-Maersk A/S, operator of the world's biggest container line, said third-quarter profit increased as it cut costs and boosted box volumes.
Earnings before interest, tax, depreciation and amortisation advanced 2.8 percent to $3.20 billion, Copenhagen- based Maersk said today in a statement today.
Maersk Line, which moves almost one-sixth of the world’s containers, lifted volumes 3.7 per cent as freight rates rose 0.9 per cent, with unit costs falling by the same degree.
The unit, battling industry overcapacity after a boom in ship orders coincided with the global slump, predicted a full-year profit higher than $2 billion, versus the previous forecast for one “significantly above” the $1.5 billion earned last year.
“I am very, very satisfied,” group chief executive officer Nils Smedegaard Andersen said in a posting on the company’s website. “We’ve seen an improvement with the result in a situation where rates have been under pressure and the oil price has been down compared to last year.”
Less bullish
The shares fell as much as 3.4 per cent in Copenhagen today and were down 2.4 per cent at 11.43 a.m., valuing the company at 281.1 billion Danish kroner ($46.9 billion). The stock has risen 13 per cent this year, compared with a 7.3 per cent decline in the 25-member Bloomberg Europe Transportation Index. “We believe they struggled with utilization as ship capacity growth was almost double the volume gains,” analysts at RS Platou Markets AS said in a note, adding the company ‘’disappointed’’ in the quarter as the result of the shipping line was ‘’essentially flat quarter on quarter.’’
Maersk reiterated that group earnings will total $4.5 billion this year, excluding discontinued operations, impairment losses and divestment gains.
Bloomberg