Maersk earnings nearly double, raises forecast

|By:, SA News Editor

A.P. Moller-Maersk (AMKAF.PK, AMKBY.OB) rallies 6% in Copenhagen after reporting Q2 net profit of 4.48B Danish kroner $801M, higher than analysts’ expectations of 3.05B kroner.

Q2 profit at Maersk Line, the shipping unit that generates about half the company’s revenue, totaled $439M vs. $227M in the year-ago quarter despite lower freight rates, and the unit expects to report a profit this year “significantly above” earnings last year.

"The freight rate drop mostly reflects shipments from Asia to Europe which is plagued by overcapacity,” a container shipping says, "but in general, Maersk managed to hold up their pricing strategy and not cut freight rates aggressively like some of its competitors."