Hapag-Lloyd Backs 2023 Outlook After 1Q Hit From Weaker Demand
May 11 2023 - 2:21AM
Dow Jones News
By Adria Calatayud
Hapag-Lloyd on Thursday confirmed its 2023 outlook after
reporting sharp falls in first-quarter earnings and revenue, as
weaker shipping demand weighed on freight rates and transport
volumes.
The German shipping company said after-tax profit for the
quarter was $2.03 billion compared with $4.86 billion in the same
period of 2022, on revenue that was 33% lower at $6.03 billion.
Earnings before interest, taxes, depreciation and amortization
dropped to $2.38 billion from $5.31 billion.
The company attributed the declines to weak global demand that
resulted in a 4.9% fall in transport volumes against a backdrop of
cost inflation.
"The market environment has normalized, with corresponding
declines in demand and freight rates. This will undoubtedly have an
impact on our earnings over the course of the year, so we will be
keeping a very close eye on our costs," Chief Executive Rolf Habben
Jansen said.
Hapag-Lloyd confirmed its previous forecasts for 2023 Ebitda to
come in at between $4.3 billion and $6.5 billion, with earnings
before interest and taxes expected to be in a range of $2.1 billion
to $4.3 billion.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
May 11, 2023 02:06 ET (06:06 GMT)
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