DENMARK's AP Moller-Maersk group posted a 30 per cent drop in first quarter profits to US$790 million year on year with Maersk Line
Maersk posts 30pc group profit loss, but container volumes beat estimates DENMARK's AP Moller-Maersk group posted a 30 per cent drop in first quarter profits to US$790 million year on year with Maersk Line, its container shipping unit, reporting a profit of $204 million against a year-on-year loss of $599 million.
At a group level, Maersk's results also exceeded analysts' forecasts in the first quarter.
"We have improved and we are satisfied with our result. Maersk Line is much more competitive and has gained strength to deal with the challenging shipping markets," said group CEO Nils Andersen.
First quarter results showed "modest improvements in the global demand for container transport, reflecting the weak economic situation especially in developed countries", said the Maersk statement.
Capacity growth outpaced demand in the first quarter after Maersk and others took delivery of new megaships.
"Conditions for the container industry remain challenging and managing supply will be even more important this year," Maersk said, adding that the company laid up 50 per cent of its idle capacity in the first quarter, totalling 28 ships aggregating to 163,000 TEU, and amounting to 20 per cent of all vessels laid up in the world. This compares to 21 ships, or 107,000 TEU, laid up at the end of last year.
