A.P. Møller-Maersk has announced that yearly group profit fell in 2011 when compared with the previous 12 months, as the group's container shipping segment suffered losses on lower freight rates.
For the year, Maersk said that profit fell 36 per cent to DKK18.1bn (€2.4bn) from DKK28bn (€3.8bn) last year, in line with the latest outlook announced in November last year, negatively impacted by the container results but positively affected by the divestment gain from Netto Foodstores in the UK (€520m).
Revenue grew 7 per cent to DKK322.5bn (€43bn), up from DKK315.4bn (€42) in 2010, helped by higher oil prices and container volumes but offset by lower container freight rates, the group noted.
'We deliver an acceptable result for 2011 considering how the shipping rates developed during the year,' said group CFO Trond Westlie. 'Markets are volatile, but our businesses are fundamentally strong and competitive. Our products and services are in high demand and most of our core businesses deliver good results.
'2012 will be another challenging year and we will continue to focus on profitability and allocate our growth investments to terminals and oil-related business,' he added.
By segment, Maersk Line recorded a loss of US$600m (€446m), compared with a profit of US$2.6bn (€1.9bn) in 2010, the result of low rates on Asia-Europe trade lanes which steadily decreased during the year as large amounts of new tonnage was delivered. Overall freight rates were 8 per cent lower than in 2010 and this, combined with 35 per cent higher bunker prices, reduced margins considerably.
The number of containers carried increased by 11 per cent to 8.1m FFE, Maersk said, with the group 'more than regaining' the market share it lost in 2010.
APM Terminals made a profit of US$649m (€482m) from a profit of US$793m (€589m) last year, with container throughput up 8 per cent on a like-for-like basis.
Retail activities, meanwhile, made a profit of DKK5.3bn (€713m), climbing on the DKK2.2bn (€296m) recorded in 2010.
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