Maersk Earnings Beat Forecasts Amid Shipping Unit Recovery

By Dominic Chopping

Danish shipping giant A.P. Moeller-Maersk AS (MAERSK-B.KO) on Thursday posted a forecast-beating second-quarter net profit as the recovery at its main shipping business continued to gather steam.

Maersk reported a quarterly net profit of $141 million compared with a loss of $2 million in the year-earlier period. Analysts expected a net loss of $52 million, according to a consensus compiled by FactSet.

Maersk, which is considered a barometer of global trade, said revenue for the quarter increased 0.5% to $9.63 billion, shy of the $9.83 billion expected by analysts.

The company's shipping unit saw higher revenue on the back of a 1.4% increase in volumes and a 1.5% rise in average freight rates while operating costs were largely unchanged amid network improvements.

Global container trade grew by around 2.0% in the quarter compared with the same period last year, in line with the company's expected full-year 2019 growth of 1%-3%.

"The soft momentum hence continued from 1Q, reflecting a broad-based slowdown in all the main economies," the company said.

"Negative effects from escalating trade restrictions also weighed on trade growth."

Maersk said it continues to expect 2019 Ebitda of around $5.0 billion, but cautioned that the macro environment continues to be subject to "considerable uncertainties."

Earnings before interest, taxes, depreciation and amortization was $1.36 billion in the second quarter, up 54% on year.

Write to Dominic Chopping at [e-mail]; @domchopping @WSJNordics

(END) Dow Jones Newswires

August 15, 2019 03:15 ET (07:15 GMT)

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