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Maersk warns Q2 shipping volumes could fall 20%-25% • 9:04 AM
- Shipping giant A.P. Moeller-Maersk (OTCPK:AMKBY) swung to a Q1 net profit of $197M vs. a year-ago loss of $659M, as cost cuts and higher freight rates helped offset a slump in demand from COVID-19, but warned that Q2 volumes could fall 20%-25%.
- Q1 revenues edged 0.3% higher Y/Y to $9.57B, in line with expectations, while EBITDA of $1.52B jumped 23%, slightly above the company’s outlook provided in March when it suspended full-year guidance due to uncertainty caused by the pandemic.
- Maersk says Q1 shipping volumes fell 3.2%, while average freight rates rose 5.7%.
- The company now expects global container demand to contract this year, after previously forecasting growth of 1%-3%.
- To deal with the slowdown in trade and keep freight rates from falling, Maersk says it canceled more than 90 sailings, or 3.5% of total shipping capacity, during Q1, and it expects to cancel ~140 sailings in Q2.
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