Shipping group A.P. Moller-Maersk , reported a steep drop in third-quarter profit and revenue on Friday and said it would cut at least 10,000 jobs in the face of overcapacity, rising costs and weaker prices, sending its shares tumbling.
Moller-Maersk (MAERSKb.CO), reported a steep drop in third-quarter profit and revenue on Friday and said it would cut at least 10,000 jobs in the face of overcapacity, rising costs and weaker prices, sending its shares tumbling.
“The new normal we are now headed into is one of more subdued macroeconomic outlook, and thus soft volume demands for the coming years, prices back in line with historical levels, inflationary pressures on our cost base, especially from energy cost, and also increased geopolitical uncertainty,” CEO Vincent Clerc said on an investor call.
The industry invested heavily in new container ships during and after the pandemic to meet strong demand and benefit from record freight rates.
Negative revenue growth in the third quarter came mainly from the retail and lifestyle sector, especially in North America, as well as automotive and technology, Clerc said.
Maersk said it expects global container volumes in its ocean business, its largest segment, to fall by up to 2% this year, primarily as a result of weak consumer demand and destocking by firms following the scramble for goods in the aftermath of the coronavirus pandemic.
The company kept its full-year guidance for revenue and operating profit but now expects both to land at the lower end of the range.
The original article contains 434 words, the summary contains 210 words. Saved 52%. I’m a bot and I’m open source!
This is the best summary I could come up with:
Moller-Maersk (MAERSKb.CO), reported a steep drop in third-quarter profit and revenue on Friday and said it would cut at least 10,000 jobs in the face of overcapacity, rising costs and weaker prices, sending its shares tumbling.
“The new normal we are now headed into is one of more subdued macroeconomic outlook, and thus soft volume demands for the coming years, prices back in line with historical levels, inflationary pressures on our cost base, especially from energy cost, and also increased geopolitical uncertainty,” CEO Vincent Clerc said on an investor call.
The industry invested heavily in new container ships during and after the pandemic to meet strong demand and benefit from record freight rates.
Negative revenue growth in the third quarter came mainly from the retail and lifestyle sector, especially in North America, as well as automotive and technology, Clerc said.
Maersk said it expects global container volumes in its ocean business, its largest segment, to fall by up to 2% this year, primarily as a result of weak consumer demand and destocking by firms following the scramble for goods in the aftermath of the coronavirus pandemic.
The company kept its full-year guidance for revenue and operating profit but now expects both to land at the lower end of the range.
The original article contains 434 words, the summary contains 210 words. Saved 52%. I’m a bot and I’m open source!