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The world’s largest container shipping line, Maersk, said on Tuesday that demand was recovering faster than expected and raised its earnings outlook, while announcing plans to cut 2,000 jobs while streamlining to cut. costs.
FILE PHOTO: A Maersk ship and containers are seen in the port of Santos, Brazil, September 23, 2019. REUTERS / Amanda Perobelli
COPENHAGEN: The world’s largest container shipping company, Maersk, said on Tuesday that demand was recovering faster than expected and raised its earnings outlook, while announcing plans to cut 2,000 jobs as streamlines to reduce costs.
Maersk, which handles about one in five containers shipped worldwide, said that while cargo volumes were still below last year, they had recovered more than anticipated after falling dramatically at the height of the pandemic. of coronavirus a few months ago.
“AP Moller – Maersk is on track to deliver a strong third quarter with strong earnings growth across all of our businesses, particularly Ocean and Logistics & Services,” Chief Executive Officer Soren Skou said in a statement.
“Volumes have recovered faster than expected, our costs have been kept under control, freight rates have increased due to strong demand,” Skou said.
Volumes at Maersk’s Ocean division declined about 3 percent in the third quarter compared to the same period last year, above an expected mid-single-digit contraction, the company said.
The Danish company said it would cut 2,000 jobs as a result of a major reorganization announced last month, where it seeks to integrate its ocean container and land logistics businesses.
Maersk currently has around 80,000 employees.
Maersk shares fell about 1% on Tuesday morning.
The company expects restructuring costs of about $ 100 million in the third quarter related to the layoffs.
Maersk said it now expects full-year earnings before interest, taxes, depreciation and amortization (EBITDA) in the range of US $ 7.5 billion to US $ 8.0 billion before restructuring and integration costs, versus a range above from US $ 6.0 billion to US $ 7.0 billion. .
Preliminary results for the third quarter showed revenue of US $ 9.9 billion, while EBITDA before restructuring and integration costs was US $ 2.4 billion, Maersk said.
(Reporting by Nikolaj Skydsgaard, edited by Louise Heavens and Susan Fenton)
