Shipping giant Maersk boosts outlook on surging demand
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[COPENHAGEN] Shipping group Maersk has announced big jumps in its full-year guidance after a strong first-quarter performance driven by high demand which has led to supply bottlenecks and higher freight rates.
Maersk raised its outlook for underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to US$13-15 billion from US$8.5-10.5 billion.
It expects underlying EBIT of US$9-11 billion, up from US$4.3-6.3 billion previously, Maersk said in a statement released late Monday.
"The continued strong performance is mainly driven by the continuation of the exceptional market situation with surging demand leading to bottlenecks in the supply chain and equipment (containers) shortage," it said.
The Danish firm said it expected the exceptional market situation to continue into the fourth quarter of this year.
Volumes in its Ocean division increased by 5.7 per cent in the first quarter, while average freight rates rose 35 per cent. Maersk raised its outlook for global demand growth to 5-7 per cent from 3-5 per cent, mainly due to export volumes from China to the United States, it said.
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The company is set to publish first-quarter results on May 5.
REUTERS
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