Hapag-Lloyd Warns of Challenging Market Amid Subdued Freight Demand
November 09 2023 - 2:26AM
Dow Jones News
By Adria Calatayud
Hapag-Lloyd warned it could face challenging quarters ahead if
spot freight rates don't recover, and narrowed its 2023 earnings
guidance toward the lower end of its prior range.
The German shipping company said Thursday that it now expects
earnings before interest, taxes, depreciation and amortization for
the full year to be between 4.1 billion and 5 billion euros ($4.39
billion-$5.36 billion), and earnings before interest and taxes of
between EUR2.2 billion and EUR3.1 billion.
The company previously forecast Ebitda of between EUR4.0 billion
and EUR6.0 billion, and EBIT of between EUR2.0 billion and EUR4.0
billion.
Hapag-Lloyd said a subdued market environment is taking a toll
on its results, as a recovery in transport volumes in the third
quarter didn't mitigate a further decline in freight rates.
"In response, we are working hard to reduce our expenses even
more, such as by achieving savings on the procurement side and
making adjustments to our service network," Chief Executive Rolf
Habben Jansen said.
Net profit for the quarter plunged to EUR257.6 million from
EUR5.12 billion a year before.
Revenue more than halved to EUR4.10 billion, while Ebitda
dropped to EUR678.8 million from EUR6.34 billion.
Hapag-Lloyd's results come after larger peer A.P. Moller-Maersk
last week said it would cut more than 10,000 jobs, adjusting to a
new normal in the industry following the end of pandemic-fueled
cargo boom.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
November 09, 2023 02:11 ET (07:11 GMT)
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