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.”