This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/2015/oct/23/maersk-line-downgrades-profit-forecast-global-trade-weakens

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Maersk Line downgrades profit forecast as global trade weakens M​​ærsk Line downgrades profit forecast as global trade weakens
(about 1 hour later)
AP Moller-Maersk downgraded its full-year outlook for underlying profit by $600m (£390m) to about $3.4bn on Friday, citing deterioration in the container shipping market. AP Møller-Mærsk has downgraded its full-year outlook for underlying profit by $600m (£390m) to about $3.4bn, citing deterioration in the container shipping market.
The Copenhagen-based shipping and oil conglomerate, which controls the world’s largest container shipping company Maersk Line, said global market conditions have been weaker than expected. The Copenhagen-based shipping and oil conglomerate, which controls the world’s largest container shipping company Mærsk Line, said global market conditions were weaker than expected.
Related: German and French economies strengthen unexpectedly - liveRelated: German and French economies strengthen unexpectedly - live
Maersk Line is an economic bellwether for global trade, which has been hit by slow growth, but the business has also been hit by heavy overcapacity. Mærsk Line is an economic bellwether for global trade, which has been impacted by slow growth, but the business has also been hit by heavy overcapacity.
Freight rates for transporting standard containers from Asia to northern Europe, carrying anything from flat-screen TVs to sportswear, were $233 last week – widely considered to be a loss-making level.Freight rates for transporting standard containers from Asia to northern Europe, carrying anything from flat-screen TVs to sportswear, were $233 last week – widely considered to be a loss-making level.
The group’s chief executive, Nils Andersen, said Mærsk Line had taken steps in recent years to ensure a “cost-effective and resilient operation” but the weak container shipping market was taking its toll.
The group’s chief executive, Nils Andersen, said that Maersk Line has taken steps in recent years to ensure a “cost-effective and resilient operation” but that the weak container shipping market is taking its toll. A toxic mix of overcapacity, low demand and aggressive pricing is depressing profits in the industry that carries up to 90% of global trade. Analysts said the profit downgrade had been larger than expected.
A toxic mix of overcapacity, low demand and aggressive pricing is depressing profits in the industry that carries up to 90 percent of global trade. “Mærsk Line has been hit harder than expected by low capacity utilisation due to the low volume growth in the global container transportation market,” Sydbank analyst Jacob Pedersen said.
Analysts said the profit downgrade was larger than expected. Shares in AP Møller-Mærsk were down 6.5% in early trading on Friday.
“Maersk Line has been hit harder than expected by low capacity utilisation due to the low volume growth in the global container transportation market“, Sydbank analyst Jacob Pedersen said.
Shares in AP Moller-Maersk were down 6.5% in early trading.