Maersk ditches full year earnings guidance citing coronavirus and a lack of visibility in box demand
A.P. Møller-Mærsk, viewed by many investors as a bellwether for shipping, has suspended its 2020 full year guidance over the unknown financial impact the coronavirus will have on the world’s largest container carrier.
Maersk had aimed for an EBITDA of $5.5bn this year, but despite a promising first quarter it has put annual projections on hold.
“The global COVID-19 pandemic severely impacts the global transport market and supply chains. This is leading to material uncertainties and lack of visibility related to the global demand for container transport,” the Danish company stated in a release today.
Despite declining volumes, Maersk revealed today it is on track to post a better Q1 this year than in 2019.
“Because of the current situation with high uncertainties related to global container demand due to the COVID-19 pandemic and the measures being taken by governments to contain the outbreak, we have chosen to suspend our 2020 full year guidance on earnings but will as soon as we have more clarity return with an outlook for 2020. Ensuring the health and well-being of our employees and supporting our customer’s needs remain our number one priority,” said Søren Skou, CEO of A.P. Moller – Maersk.
