Transport and energy conglomerate AP Møller-Maersk, the parent company of reefer container service operator Maersk Line and freight forwarding specialist Damco, has achieved record profits of US$5.01bn for 2010, a notable turnaround on the US$1.02bn loss posted in 2009.
According to the company's annual results, published today, the group achieved total sales of US$56bn during the course of last year, up 15.5 per cent on the previous 12 months.
However, the company warned that its results for the current year would most likely be adversely affected by a decline in its oil and gas production, as well as the fact that global container capacity is set to outstrip demand.
Commenting on last year's results, chief executive Nils Andersen said: 'Our people have done a truly great job. We have become more competitive and our improved service across the group has led to continued increases in customer satisfaction.'
Central to the group's return to profitability has been the ability of its container services arm, Maersk Line, to reverse a decline in returns.
The division posted revenues of US$26bn – up 31 per cent year on year and profits of US$2.64bn for 2010, against a loss of US$2.13bn in 2009.
Damco, meanwhile, made a profit of US$44m, increasing its earnings margin (before interest and taxes) to 2.8 per cent from 1.0 per cent.
Profit before depreciation, amortisation and impairment losses was US$44m, compared with US$10m the year before.
Increased volumes handled by the division resulted in an increase in revenue to US$2.7bn, against US$2.2bn in 2009.
In its report, the group commented: 'In 2010, the global logistics market was positively affected by the increase in world trade, and Damco handled 610,000 TEU of seafreight as well as 48m cubic metres SCM, corresponding to approximately 2m TEU, up 18 per cent and 13 per cent, respectively, compared to 2009, which was slightly above market average.
'Airfreight volumes increased by 24 per cent to 75,000 tonnes, which was above market average.'
Elsewhere, APM Terminals made a profit of US$793m, positively affected by the divestment of the Yantian terminal in China to Cosco Pacific back in April 2010.
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