A.P. Moller-Maersk said net profits for the third quarter of 2011 were lower than forecast and predicts a profit loss for the full year as its container shipping business continues to struggle against weak freight rates and high fuel costs.
The Denmark-based shipping and oil giant said net profit fell to DKK1.92 billion (US$351 million) in July-September 2011 from DKK9.62 billion ($1.7 billion) quarter-on-quarter.
Maersk Line, the world’s biggest container shipping company and an indicator of global trade, registered an operating loss of DKK1.18 billion ($216 million) in the third quarter against industry expectations of a loss of DKK962 million ($176 million). A year earlier, the firm realized an operating profit of DKK6.65 billion ($1.2 billion) for the same period.
The shipping company now forecasts a “negative result for the full year as a consequence of lower rates on especially the Asia-Europe trade” after predicting a moderate gain earlier.
A.P. Moller-Maersk had a full-year outlook of a net profit ranging from $3.1 billion to $3.5 billion for 2011, including divestment gains, lower than the $4.71 billion posted last year.
The group had earlier eyed a 2011 net result lower than 2010 and a “modest positive result” this year for its container shipping operations.
Photo from Maersk
