Maersk’s profits rise by shipping more containers

Danish shipping giant beats analysts' expectations with its first quarter profits. Citing improved performance, Maersk Line now expects to beat 2013's annual results.

Maersk's profits rise by shipping more containers
Maersk's positive results were down to shipping more containers at a lower average price. Photo: Maersk Line
Shipping and oil conglomerate A.P. Moeller-Maersk reported Wednesday a 62 percent rise in quarterly profit as it shipped more containers but for a lower average price.
Net profit for the group rose in the first three months of the year to 6.2 billion kroner ($1.15 billion) from 3.9 billion kroner ($710 million), beating a Dow Jones analyst consensus of 5.75 billion kroner ($1.05 billion), as earnings from container shipping line Maersk Line more than doubled to 2.48 billion kroner ($454 million).
Revenues climbed 0.9 percent to 64.2 billion kroner ($11.736 billion), falling slightly short of an analyst consensus of 65.66 billion kroner ($12.0 billion).
Maersk Line reiterated that global demand was expected to grow by four to five percent, but said it now believes its annual results will beat last year's due to "improved operational performance and utilisation".
The Maersk group, which in January sold its supermarket business for a gain of 14.2 billion kroner ($2.6 billion), raised its guidance for annual profit excluding discontinued operations, impairment losses and divestment gains to 21.9 billion kroner ($4.0 billion) from 19.7 billion kroner ($3.6 billion).
With a 15 percent market share in global container shipping, the company is considered a bellwether for international trade.
"Pressure from excess capacity is expected to remain throughout the year," Maersk said in a statement.
The financial crisis has weighed on the international shipping market and the major routes between Europe and Asia have been particularly badly hit by overcapacity.
The group's shipping business has outperformed a troubled sector partly due to cost cuts, and last year it announced an alliance with two other major ocean carriers on routes between North America, Europe and Asia, called the P3 Network.
The company said it expects the alliance to start operations in "the autumn of 2014" rather than a previously stated goal of the middle of this year pending regulatory approval.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


Denmark’s toy giant Lego offers staff bonus after bumper year

Danish toymaker Lego, the world's largest toymaker, Denmark's Lego, said on Tuesday it will offer its 20,000 employees three extra days of holiday and a special bonus after a year of bumper revenues.

Lego is rewarding staff with a Christmas bonus and extra holiday after a strong 2022.
Lego is rewarding staff with a Christmas bonus and extra holiday after a strong 2022. File photo: Ida Guldbæk Arentsen/Ritzau Scanpix

Already popular globally, Lego has seen demand for its signature plastic bricks soar during the pandemic alongside its rapid expansion in China.

“The owner family wishes to… thank all colleagues with an extra three days off at the end of 2021,” the company said in a statement.

The unlisted family group reported a net profit of more than 6.3 billion Danish kroner (847 million euros) for the first half of 2021.

Revenues shot up 46 percent to 23 billion kroner in the same period.

It had been “an extraordinary year for the Lego Group and our colleagues have worked incredibly hard,” said the statement, which added that an unspecified special bonus would be paid to staff in April 2022.

Lego, a contraction of the Danish for “play well” (leg godt), was founded in 1932 by Kirk Kristiansen, whose family still controls the group which employs about 20,400 people in 40 countries.

READ ALSO: Lego profits tower to new heights as stores reopen