Hapag-Lloyd Backs 2023 Outlook After 1Q Hit From Weaker Demand

   By Adria Calatayud 
 

Hapag-Lloyd on Thursday confirmed its 2023 outlook after reporting sharp falls in first-quarter earnings and revenue, as weaker shipping demand weighed on freight rates and transport volumes.

The German shipping company said after-tax profit for the quarter was $2.03 billion compared with $4.86 billion in the same period of 2022, on revenue that was 33% lower at $6.03 billion.

Earnings before interest, taxes, depreciation and amortization dropped to $2.38 billion from $5.31 billion.

The company attributed the declines to weak global demand that resulted in a 4.9% fall in transport volumes against a backdrop of cost inflation.

"The market environment has normalized, with corresponding declines in demand and freight rates. This will undoubtedly have an impact on our earnings over the course of the year, so we will be keeping a very close eye on our costs," Chief Executive Rolf Habben Jansen said.

Hapag-Lloyd confirmed its previous forecasts for 2023 Ebitda to come in at between $4.3 billion and $6.5 billion, with earnings before interest and taxes expected to be in a range of $2.1 billion to $4.3 billion.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

May 11, 2023 02:06 ET (06:06 GMT)

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