© Reuters.
By Scott Kanowsky
Investing.com — AP Moeller-Maersk A/S (CSE:) has delivered lower-than-expected annual income guidance, citing an easing in a pandemic-era boom in demand for goods and expectations for sluggish global growth in 2023.
The Danish shipping firm now sees full-year underlying earnings before interest, tax, depreciation and amortization in the range of $8 billion to $11 billion, below Bloomberg consensus estimates of $13.45B.
“Guidance is based on the expectation that inventory correction will be complete by the end of H1 leading to a more balanced demand environment, that 2023 global GDP growth remains muted, and that the global ocean container market will grow in a range of -2.5% to +0.5%,” Maersk said in a statement.
The outlook includes an impairment and restructuring charge of $450 million in the first quarter, it added.
Analysts at Citi flagged that the disappointing forecast will likely fuel downgrades to consensus expectations for the company’s future performance.
Copenhagen-listed shares in the business fell in early trading on Wednesday.
In the of 2022, higher costs and lower volumes contributed to an 18.4% decrease in core income to $6.5B, although this came in above estimates of $6.42B. Its key ocean transport division – responsible for more than 90% of Maersk’s returns in the prior quarter – was particularly impacted, with earnings sliding by over a sixth to $6.03B. This decline was partially offset by strength in its logistics and services unit.
“Overall, the businesses performed well in an environment of receding demand and rising inflation,” Maersk said.
Be the first to comment