P&O purchase cuts into APM profits

ALAN PEAT FOR THE Danish shipping company AP Moller/Maersk, 2005 results showed a 31.5% increase in turnover, but – with the acquisition (US$2.4-billion) and integration costs of its purchase of Royal P&O Nedlloyd making their contribution – profit for the year fell by 27.8%. Revenue for the year was US$34.843-billion (2004 US$26.490‑bn) and profit for the year US$3.370‑bn (US$4.672-bn). In its outlook for 2006, the AP Moller/Maersk group expects that - with oil prices at the average level year to date, and freight rates expected to be below those of 2005 – its total revenue will be in the order of US$44‑bn, and its profit for the year will be 10-15% lower than 2005.