Maersk mauled by liner loss

AP Moller-Maersk plunged deeper into the red than feared in 2009 following a loss of over $2bn from its container line.

Nils Andersen.

Nils Andersen-led Maersk sank to a loss of $1.02bn in a “historically low rate environment”, overturning a profit of $3.46bn a year ago.

Analysts had forecast a reversal of $919.4m.

Its liner operation fell to a $2.09bn loss for the full-year as income from its containerships collapsed by nearly 30%.

Andersen, CEO of AP Moller, said in a conference call: “Liner companies have seen huge losses in 2009. Effectively the industry has been driven into bankruptcy.”

Substantially lower tanker rates also took their toll as profit from the Danish giant’s other shipping activity fell by over $800m to just $275m.

Andersen said: "The loss is significant, but 2009 was an extraordinary year with historically low rates and low demand.

“We managed to limit the loss by saving around $2bn and we will continue to strengthen our competitiveness even further.

“We expect to return to modest profits in 2010.”

Three quarters of the cost savings were made at the company’s liner division, which despite an expected climb in volumes during 2010 will still not produce “acceptable results this year”, its annual report says.

Oil and gas remains the main bread winner for AP Moller. However, the division's profit was cut in half to $1.16bn as revenue slipped by a third.

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