91 days ago • Posted by William Ramstein

Maersk earnings surged despite disappointing outlook

Shipping giant A.P. Moller-Maersk A/S swung to a $1.3 billion profit in the fourth quarter, but its outlook fell short of analyst expectations as pandemic-driven supply-chain disruptions continue to trigger sharp changes in trade demand and freight rates. The Copenhagen-based parent of Maersk Line, the world’s biggest ocean container line by capacity, said its profit before interest, tax, depreciation and amortization reached $8.2 billion last year from $5.7 billion in 2019. It expects its earnings this year to be between $8.5 billion and $10.5 billion. The outlook was short of market expectations of around $10.8 billion in earnings this year, according to Clarksons Platou Securities. Some analysts expect significant headwinds this year, saying that freight rates that soared in the second half of 2020 have likely peaked, putting a lid on future earnings growth. Source: WSJ