Maersk , a multinational logistics integrator, reported growth across all its businesses and financial results significantly higher than the previous year, driven primarily by Ocean , while both Logistics & Services and Terminals also contributed improved earnings, according to a company statement.
Following the quarterly results combined with strong container market demand and the continuing Red Sea situation, Maersk updated its 2024 guidance on 21 October, now expecting full-year underlying EBIT of $5.2 to $5.7 billion (previously $3.0 to $5.0).
“We reaffirmed our commitment to profitable growth and operational progress, driving results across all business areas through a rigorous and continued focus on cost discipline, productivity gains and efficient asset utilization. In Logistics and Services, our focused effort led to consistent margin improvements and growth through new customer wins. In Terminals, we drove further improvements, building on already high performance. Our Ocean team responded to recurring network disruptions with great agility by leveraging our hub terminals and investing in capacity and equipment to mitigate the supply chain impact on our customers, while optimizing unit costs,” said Vincent Clerc, CEO of Maersk, quoted in the statement.
Ocean’s improved profitability was driven by higher freight rates as well as positive volume growth, culminating in a 41% increase in revenue. The re-routing of the network south of the Cape of Good Hope remained a significant driver of its cost base , impacting fuel burn and overall operating costs. These cost pressures were largely offset by efficient operational execution, resulting in an increase in EBIT of USD 2.9 billion and a margin of 25.5 percent.
Logistics & Services had a strong third quarter with revenue growth of 11% year-over-year and 7.2% sequentially, driven by higher volumes across most products. Profitability continued its recovery, reaching EBIT of $200 million, up $64 million year-over-year, primarily driven by profitable growth in Lead Logistics and Air, resulting in an EBIT margin of 5.1 percent.
Terminals continued to deliver solid revenue growth, particularly in North America. Revenue per movement reached all-time highs during the quarter driven by higher volumes, improved rates and product mix. Consequently, Terminals achieved its best EBITDA since Q1 2022 of $424 million and ended the quarter with an ROIC (LTM) of 13.0 percent.
Maersk operates in more than 130 countries and employs 100,000 people. On the maritime side, it has just over 4.4 million containers in its possession and manages 714 container ships, according to Alphaliner.
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