COPENHAGEN (Reuters) – Shipping group AP Moller-Maersk said on Friday it was targeting annual operating profit at the lower end of its forecast range and cutting 10,000 jobs, citing falling freight rates and subdued demand .
“Our industry is facing a normalization with moderate demand, prices back in line with historical levels and inflationary pressure on our cost base,” CEO Vincent Clerc said in a statement.
“Since the summer, we have seen overcapacity in most regions, leading to price declines and no notable increase in ship recycling or business shutdowns,” he added.
Earnings before interest, taxes, depreciation and amortization (Ebitda) plunged to $1.9 billion in the quarter, from $10.9 billion a year earlier. Analysts had expected Ebitda of $1.81 billion, according to Refinitiv data.
Revenue fell 47% in the third quarter to $12.1 billion.
(Reporting Jacob Gronholt-Pedersen and Louise Rasmussen, Kate Entringer)
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