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Oct 14, 2020 at 5:26 PMA.P. Moller-Maersk adjusts its full-year forecast for 2020 based on preliminary Q3 figures and current outlooks for Q4. However, the outlook for the coming year remains uncertain.
Søren Skou, CEO of A.P. Moller – Maersk, says, “A.P. Moller – Maersk is on track to achieve a strong third quarter with solid profit growth across all our business areas, particularly in shipping as well as logistics and services. Volumes have recovered faster than expected, our costs have remained well under control, freight rates have increased due to strong demand, and we are seeing rapid revenue growth in logistics and services. The outlook for the fourth quarter is solid for the same reasons, and we are therefore able to raise our expectations for the full year.
Søren Skou, CEO of A.P. Moller
The outlook for 2021 remains uncertain due to the ongoing pandemic. The positive effects of stimulus packages may be less pronounced in 2021, potential new measures will affect demand, and the timing and effectiveness of a potential vaccine will impact 2021.”
The company now reports an unaudited revenue of USD 9.9 billion and EBITDA before restructuring and integration costs of USD 2.4 billion for Q3 2020, attributed to a continued recovery in demand and its cost improvement initiatives. Volumes in ocean freight declined by about 3 percentage points in Q3 2020 compared to the previous year, which is slightly better than the expected decline in the mid-single-digit range.
Restructuring Costs Weigh on Profit
A.P. Moller – Maersk expects restructuring costs of approximately USD 100 million in Q3 2020 related to the layoffs of about 2,000 employees as a result of the organizational changes announced on September 1, 2020, in the areas of ocean freight and logistics & services.
Given the results in Q3 2020 and the current profit dynamics we see across all business areas, EBITDA for the full year 2020 is now expected to be in the range of USD 7.5-8.0 billion before restructuring and integration costs (previously USD 6.0-7.0 billion). All other parameters of our forecast published on August 19 remain unchanged.
Increased Uncertainty Due to Covid19
The trading conditions for the coming quarters remain subject to higher than normal uncertainty due to disruptions caused or potentially caused by COVID-19.
A.P. Moller – Maersk will publish its interim results for Q3 on November 18, 2020.
Photos: © Maersk
