Inspenet, November 6, 2023.
The maritime transport company AP Moller-Maersk announced last Friday a significant decrease in its profits and revenues during the third quarter. As a result of lower freight rates and moderate demand in container shipping, the Danish company plans to cut 10,000 jobs.
Despite these challenges, Maersk has maintained its projections for the year in terms of revenue and operating profit, although it now expects both to be at the lower end of the forecast range.
” Our industry faces a new normal with subdued demand, prices back in line with historical levels and inflationary pressure on our cost base ,” CEO Vincent Clerc said in a statement.
In August, the group had already signaled that it expected a sharper decline in global container shipping demand this year. This was due to slow economic growth and declining inventories following the COVID-19 pandemic.
Maersk has announced its intention to reduce its workforce from 110,000 employees to fewer than 100,000 . This will result in a savings of $600 million next year compared to this year.
However, a one-time cost of $350 million is expected related to this restructuring process, which will primarily impact its financial performance in 2023.
The company announced that it projects underlying earnings before interest, taxes, depreciation and amortization (EBITDA) for the year in a range of between $9.5 billion and $11 billion, and that underlying earnings before interest and taxes are estimated in a range of between 3,500 and 5,000 million dollars.
In the third quarter, EBITDA saw a drastic drop, declining to $1.9 billion from $10.9 billion a year earlier. Despite this decline, the figure was slightly above analysts’ expectations, who expected $1.81 billion according to a Refinitiv survey. Additionally, the company’s revenue decreased by 47%, reaching $12.1 billion.
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