Maersk suffers further losses, faces foggy 2012

< Emma Maersk >

Maersk Group published its annual report for 2011.

Maersk's revenue increased by 7% to USD 60.2 billion (USD 56.1 billion), positively affected by higher oil prices and container volumes, but offset by lower container freight rates. Profit was USD 3.4 billion (USD 5.0 billion), and thus in accordance with the latest results the company announced an outlook of USD 3.1 to 3.5 billion on November 9, 2011.

The result was negatively affected by low container freight rates, especially on the Asia–Europe trades and positively affected by divestment gains from Netto Foodstores Limited, UK of USD 0.7 billion. The group’s return on invested capital (ROIC) was 8.3% (12.2%).

Maersk Liner Business made a loss of USD 0.6 billion (profit of USD 2.6 billion) and a negative ROIC of 3.4% (positive by 15.3%). The negative result was primarily due to the low rates on the Asia–Europe trades. The freight rates started the year at a reasonable level, but decreased throughout the year as large amounts of new tonnage was delivered.

Overall freight rates were 8% lower than in 2010 and this, combined with 35% higher bunker prices, reduced margins considerably. The number of containers carried increased by 11% to 8.1 million FFE, and the group more than regained the market share lost during 2010.

APM Terminals made a profit of USD 649 million (USD 793 million). The profit excluding sales gains and impairment losses was 24% higher than in 2010. Container throughput increased by 8% on a like-for-like basis and ROIC was 13.1% (16.0%). The high investment level from previous years continued, and during 2011, APM Terminals secured further new investments and development projects, primarily in emerging markets.

Damco continued growing and adjusting its business portfolio. With the acquisition of NTS International Transport Services in China, Damco has significantly increased its service offerings within the airfreight market. Profit was USD 65 million (USD 44 million) and ROIC was 25.8% (22.2%). Svitzer experienced mixed market conditions and slightly improved profits to USD 133 million (USD 130 million).

“We deliver an acceptable result for 2011 considering how the shipping rates 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,” says Group CFO Trond Westlie. < Korea Shipping Gazette >