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The third quarter of this year again proved strong for A.P. Moller-Maersk
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Maersk reported growth across its businesses and financial results significantly above last year, mostly driven by Ocean
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Further, both Terminals as well as Logistics & Services contributed through better earnings.
The third quarter of this year again proved strong for A.P. Moller-Maersk.
Maersk reported growth across its businesses and financial results significantly above last year, mostly driven by Ocean. Further, both Terminals as well as Logistics & Services contributed through better earnings.
The robust container market demand and continued Red Sea situation coupled with the back of the strong quarter pushed Maersk to upgrade its outlook for 2024. The company now expects full year earnings before interest and taxes (EBIT) of $5.2 billion to $5.7b billion, from the previous $3 billion to $5 billion.
Maersk CEO Vincent Clerc in a statement said: “This quarter, we again supported our customers through times of high volatility and low visibility. We reaffirmed our commitment to profitable growth and operational progress.”
He added that driving results across all business areas were achieved “through continued rigorous focus on cost discipline, productivity gains, and efficient asset utilization.”
Maersk’s Logistics & Services delivered a strong third quarter with revenue growth of 11% year-on-year, sparked by higher volumes across most products.
Profitability continued to recover, landing at an EBIT of $200 million, which showed an increase of $64 million, year-on-year.
The profitability of the Ocean segment was driven by the higher freight rates along with positive volume growth. This culminated in a 41% hike in revenue. EBIT rose to $2.9 billion with a margin of 25.5%.
As for Terminals operations, strong top-line growth was experienced, especially in North America. Revenue per move hit all-time highs in the quarter, driven by higher volumes and improved tariffs, plus product mix. Terminals hit its best EBITDA since the first quarter of 2022 of $424 million.
For the rest of this year, Maersk now expects worldwide container growth to be around 6% from the previous 4% to 6%, Capital expenditures remains unchanged.
