The Danish shipping and oil conglomerate A.P. Moller-Maersk raised its earnings forecast after a strong third quarter, that saw Maersk Line net profit rise 11 per cent to $554 million, exceeding average forecasts of $521 million in a Reuters poll. The company attributes this in part to cost cutting measures and lower fuel prices, on a number of its established trade routes.
"Maersk Line's development in transported volumes is better than expected,"- Alm. Brand Bank Analyst.
Maersk Line, the world's largest container shipping line, accounted for about 50 percent of the group's revenue; and suggests a long-awaited upturn in the container shipping market. Considering that Maersk's shipping vessels account for approximately 15 per cent of the world's container shipping capacity, this is very encouraging news for the global economy and for investors who have already, or want to invest in shipping containers.
"The global market showed encouraging growth of around 5 percent in Q3 … showing early indications of demand picking up," Maersk Earnings Report.
Maersk raised its forecast for full-year group net profit to approximately $3.5 billion, an increase from around $3.3 billion. Furthermore, the company reiterated that it fully expects Maersk Line to easily beat last year's figure of $461 million and continue to profit in a market that will experience growth of up to 5 percent in the coming years. Moreover, Maersk suggested that the industry can expect that shipping rates will rise in the coming months (2013-2014), as it feels that some of its current shipping services are undervalued.
"We want to grow with the market … We are not interested in gaining market share in a low-cost situation."- Maersk Chief Executive Officer