Maersk upgraded part of its guidance for full-year earnings despite weaker rates that hit profits in the third quarter.
The world’’s second-largest liner operator (MAERSK-B.CO) on Thursday said revenue totaled $14.2 billion in the third quarter, down from $15.8 billion in the year-ago period. Earnings before interest, taxes, depreciation and amortization (EBITDA) was $2.7 billion, down from $4.8 billion, while earnings before interest and taxes fell to $1.3 billion from $3.3 billion a year ago.
The Copenhagen-based company revised the lower limit of the range of its previous full-year expectations. EBITDA is now forecast at $9.0-$9.5 billion from the prior $8.0-$9.5 billion, while EBIT is seen higher at $3.0-$3.5 billion from $2.0-$3.5 billion.
“We have delivered a strong third quarter across our business. Our performance reflects our ability to execute and continuously improve, as well as the trust customers place in us,” said Maersk Chief Executive Vincent Clerc, in a release. “The new East-West network has strengthened our ocean performance, delivering industry-leading reliability, higher volumes and lower costs. Terminals achieved another record quarter with strong volume growth, and logistics & services continued to enhance profitability. As market conditions fluctuate, we are well positioned to help our customers adapt and maintain stability across their supply chains,”
Overall container volume grew 7%, ahead of the 3.7% market-wide increase. Improvement was strongest on east-west trades at 9.6%, while north-south traffic improved 4.4% and intra-regional by 5.4%.
But ocean freight rates fell by 30.7% against an industry-wide decline of 24.9% as carriers struggled with the effects of higher tariffs and broader economic uncertainty.
Maersk’s EBITDA margin was 19.5% and EBIT at 6.2%, a decrease from 36% and 25.5% y/y.
Find more articles by Stuart Chirls here.
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