Shipping group A.P. Moller-Maersk on Friday said it now expects full-year operating profit at the lower end of its range and would cut 10,000 jobs as it faces lower freight rates and subdued demand for container shipping.
“Our industry is facing a new normal with subdued demand, prices back in line with historical levels and inflationary pressure on our cost base,” CEO Vincent Clerc said in a statement.
“Since the summer, we have seen overcapacity across most regions triggering price drops and no noticeable uptick in ship recycling or idling,” he said.
Earnings before interest, tax, depreciation and amortisation (EBITDA) plunged to $1.9 billion in the quarter from $10.9 billion a year earlier, slightly above analysts’ expectations of $1.81 billion in a Refinitiv poll. Revenues fell 47% to $12.1 billion.
