Maersk releases ‘mixed bag’ of results – outlook uncertain

In its annual report for 2008, the AP Moller/Maersk group recorded a turnover of over R61.2-billion, and a gross profit of just under R16.5-bn. This saw revenue up almost 20% on the R51.2-bn of 2007, and profit up over 38.6% on 2007’s R11.9-bn. Extracted from the group results, the container shipping and related activities showed a moderately positive result, slightly above 2007, according to the report. Its R28.66-bn revenue was up 11% on 2007; operational cash flow by 31% at over R1.99-bn; and profit after tax up a whopping 93.4% at R2.05-bn compared to R1.06-bn in 2007. But 2008 was a mixed year of ups and downs, according to the report. It said: “The result was negatively affected by significantly higher fuel costs, although to a larger extent than previously compensated for by fuel surcharges on freight rates. “Increasing freight rates in the first half of 2008 affected the result positively. “But freight volumes in major trades fell in the last quarter of the year, causing rates to develop negatively. “ As part of its efforts to cut costs, and get out of the loss-making scenario it has inhabited in recent times, the group launched its “streamline” initiatives in January 2008. “This,” said the report, “entailed non-recurring costs of US$245-million. The initiatives are expected to take full effect over the coming years.” But AP Moller/Maersk has no high hopes for 2009. “The outlook for 2009 is subject to considerable uncertainty,” it said, “not least due to developments in the global economy. “Specific uncertainties relate to developments in container freight rates, transported volumes, the USD exchange rate and oil prices.”