Monday, August 6, 2012
Maersk Line to rally in 2013, says CEO
According to the head of A. P. Moller-Maersk, Nils Smedegaard Andersen, Maersk Line will recover in 2013 despite its tepid performance this year.
Container shipping has been hit hard due to sluggish world markets, high fuel costs and overcapacity. Companies have struggled to make a profit due to plunging freight rates, which have just started to rally this year.
"Although we are not as well positioned as we hoped to be a year ago, the early signs are positive and I am optimistic that Maersk Line will be in a much stronger position in a year's time," Andersen said in the company magazine. He added the container line is striving to restore rates to sustainable levels by expanding only as much as the market will allow and by reducing costs wherever it can.
This is one part of a four-part strategy that A. P. Moller-Maersk launched in February 2011, when it invested $12.23 billion in its four core businesses — container shipping, oil and gas production, oil services and ports operations.
A.P. Moller-Maersk’s oil services business, which includes drill ships, supply vessels and oilrigs, received the highest allotment at $4.75 billion. $3.98 billion went to the company’s oil and gas business, $1.90 billion went to Maersk Line and APM Terminals received $1.61 billion.
The parent company, which will report results for the first half of 2012 on August 14, has predicted a profit for 2012 that is just a little lower than 2011’s $3.4 billion.
For more of the Reuters story: www.reuters.com
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