Shipping group Maersk has seen profits take a dive in 2011 and forecast a challenging outlook for 2012.
According to the group’s results published on 27 February, profits overall fell by a third year on year to $3.4bn from $5bn in 2010, and profits before tax were down by three per cent to $9.4bn.
Group chief financial officer Trond Westlie said: “We deliver an acceptable result for 2011 considering how the shipping rates have developed during the year. Markets are volatile, but our businesses are fundamentally strong and competitive. Our products and services are in high demand and most of our core businesses deliver good results. 2012 will be another challenging year and we will continue to focus on profitability and allocate our growth investments to terminals and oil-related business.”
Although revenue climbed by seven per cent to $60.2bn from $56.1bn, this was due mainly to higher oil prices and container volumes and was offset by lower container freight rates. The Asia-Europe rates were especially low. Freight rates overall were some eight per cent lower than in 2010 while bunker prices ran 35 per cent higher, seriously eroding profit margins.
Westlie added that one positive factor for the group overall was the divestment gain from Netto Foodstores in the UK which earned the group some $700m. He said that it still expects “a positive result” in 2012, although lower than the 2011 figures.
