AP Moller-Maersk reports ‘unsatisfactory earnings’ in first quarter

AP Moller-Maersk saw its revenue rise by 30% year-on-year in the first quarter of 2018 to reach $9.3bn.
That year-on-year revenue improvement figure would be 10% if shipping line Hamburg Süd – which was acquired at the end of 2017 – was taken out of the figures, but there was growth “in all business segments”.
The non-ocean-based businesses of the Denmark-based transport and logistics company reported revenue growth year-on-year, including 6% in the Logistics & Services segment.
However, Logistics & Services reported slightly lower earnings before interest, taxation, depreciation and amortisation (EBITDA) of $23m, down from $32m in the first quarter of 2017.
Søren Skou, group chief executive, said: “In the first quarter of 2018, we reported a 30% revenue growth and the integration of the business is well underway with a successful start to the Hamburg Süd integration.
“At the same time, on the short-term performance, our result especially in the ocean-related part of the business was unsatisfactory.
“In response to the current challenging market conditions we are implementing a number of short-term initiatives to improve profitability and we reiterate our guidance for 2018.”
EBITDA across the company increased by 5% to $669m, negatively impacted by adverse rates of exchange compared to the same period of last year.
The underlying result for AP Moller-Maersk after financial items and tax of minus $239m may have been deemed “unsatisfactory”, but the company reiterated its expectations for the whole of this year of an underlying profit of $356m, above the figure for 2017, while nevertheless noting increased uncertainties due to geopolitical risks, trade tensions and other factors adversely impacting freight rates and rates of exchange.

Share this story

Related Topics

Latest business news

CargoAi highlights benefits of strategic investors over venture capital

By Damian Brett

Strategic investors allow companies to adopt a more long-term outlook than venture capital (VC) which can encourage short-term thinking, according…

Read More

Share this story

Rates on major trades down but still more than 50% above pre-Covid levels

By Damian Brett

Airfreight rates continued their downward spiral in January but are still above pre-Covid levels. The latest statistics from the Baltic…

Read More

Share this story

Etihad and Astral partner on Nairobi cargo flights

By Damian Brett

Etihad Cargo and Astral Aviation have signed a new partnership that will help expand the Middle Eastern carrier’s presence in…

Read More

Share this story