A.P. Moller-Maersk shows improved first half results

A.P. Moller-Maersk shows improved first half results

   A.P. Moller-Maersk Group reported improved first half results as better markets and rates for its container shipping and tankers divisions offset higher oil prices and a negative exchange rate for U.S. dollars.

   The Danish group reported revenue of DKK 76.5 billion ($11.2 billion) up from DKK 75.3 billion for the year-earlier period. Net results improved to DKK 9.3 billion ($1.4 billion), from DKK 9.0 billion for the first half of 2002.

   For its container shipping and related activities — which includes container carrier Maersk Sealand ' revenues improved to DKK 43.1 billion ($6.3 billion) from DKK 42.5 billion, as net profit jumped to DKK 1.4 billion (about $205 million) from DKK 66 million.

   Container volumes increased partly due to general growth in world trade, the group said. While average rates rose for the period from low and unprofitable levels in 2002, the group saw a 19 percent decline in U.S. dollar exchange rate against DKK, which led to a fall in average rates in DKK of about 12 percent compared to the first half of 2202.

   Safmarine Container Lines also saw results below the year-earlier period, due partly to lower gains from the sale of vessels and exchange rate development, the group said.

   With increased volumes and freight rates in U.S. dollars along with increased activities in trucking and warehousing, Maersk Sealand achieved a result consistent with the first half of 2002.

   Maersk Logistics and APM Terminals both saw contained growth above the first half of 2002, the group said.

   For its tanker, trampers and offshore activities, revenues fell to DKK 6.5 billion ($951 million) from DKK 7.4 billion. Net results fell to DKK 1.3 billion ($200 million) from DKK 1.5 billion.

   Lower revenues were due to disposal in April 2002 of a major part of the dry bulk vessel activities and the decline in exchange rate against the U.S. dollar, the group said. Car carriers also achieved a result slightly below the first half of 2002.

   For its overall outlook, A.P. Moller-Maersk said with freight rates, oil prices and DKK-U.S. dollar exchange rates at present levels an after-tax result of 15 percent above 2002 is expected.