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Maersk container business sinks to quarterly loss

Wednesday, November 02, 2016 - 01:11

Maersk misses forecasts with a 44 percent fall in third-quarter profit as the world's biggest container shipping firm struggles with overcapacity, sending its shares sharply lower. Hayley Platt reports.

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Maersk - making waves - but possibly of the wrong kind ... Its shares down almost 7 percent after announcing a loss in its key container business. Overall, net profit fell to $438 million over the quarter - 44 per cent down and well below the $490 million expected. It blamed lower freight rates for the container losses. Low oil prices haven't helped either as the industry faces its worst downturn in years. (SOUNDBITE) (English) FERN WEALTH, DIRECTOR OF INVESTMENT MANAGEMENT, ALASTAIR MCCAIG, SAYING: "We've seen China perform much better to this year than we had expected but we have also seen currency wars escalate on a global basis which has seen many of the countries and economic regions of the world refocus their acquisitions internally." The Danish firm - the world's largest shipping company - is refocussing its operations. Splitting them in two. Transport will gain a greater focus - while it creates a separate energy division. That, it says, to happen via joint ventures, mergers, or a listing within two years.

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Maersk container business sinks to quarterly loss

Wednesday, November 02, 2016 - 01:11