APM profit far larger than expected

18-08-2010 09:04 A.P.Moller-Maersk Group is upgrading and expecting a far larger profit than previously expected, the group wrote in the interim report for the second quarter 2010. Totally, The A.P.Moller-Maersk Group expects that the 2010 result will exceed USD 4 billion, compared to the APM announcement of July 8, in which the group expected that the 2010 result would exceed the 2008 result of USD 3.5 billion corresponding to DKK 17.6 billion. This means that the APM group upgrades its expectations for 2010 by USD 500 million – provided that the current level for freight rates, oil price and dollar is maintained.
The expected profit of USD 4 billion is exclusive of the expected gain in the order of DKK 4.6 billion from Dansk Supermarked A/S’ sale of Netto UK.

»The outlook for 2010 is subject to considerable uncertainty, not least due to developments in the global economy. Specific uncertainties relate to the container freight rates, transported volumes, the USD exchange rate and oil prices,« A.P.Moller-Maersk wrote in the report.

The results for the A.P.Moller-Maersk Group which is Denmark’s largest business are impressive, and the group noted that it is again able to make money. For the first six months of the year total revenue increased to DKK 153.5 billion compared to revenue of DKK 127.5 billion in the corresponding period 2009. Revenue thus increased by 20 per cent in the period, primarily as a result of higher freight rates and volumes for the Group’s container shipping activities as well as higher oil prices. Profit before tax rose by 332 per cent to DKK 27 billion compared to DKK 6.2 billion in the same period 2009. This means that the profit for the period is DKK 14.1 billion compared to a loss of DKK 3 billion in 2009.