Shipping giant Maersk has raised its earnings outlook for the year, following a recovery in demand and measures to improve costs, the company said in a trading update.
Maersk now expects full-year earnings before interest, taxes, depreciation and amortisation (EBITDA) in the range of $7.5 billion to $8.0 billion before restructuring and integration costs, up from an earlier range of $6.0 billion to $7.0 billion.
Ocean volumes declined by around 3% in the third quarter compared to previous year, 'which is slightly better than the anticipated mid single digit contraction', the company said.
Restructuring Costs
The company also said it expected restructuring costs of around $100 million in the third quarter related to redundancies of around 2,000 employees.
'Trading conditions for the quarters ahead remain subject to a higher than normal volatility given the disruptions caused or potentially being caused by COVID-19,' it added.
News by Reuters edited by Donna Ahern, Checkout. Click subscribe to sign up for the Checkout print edition.
