By Dominic Chopping


A.P. Moeller-Maersk AS on Wednesday cut its demand forecast for this year as the global economic slowdown takes hold, despite posting third-quarter earnings that beat expectations as it continued to benefit from higher freight rates.

"The extraordinary earnings have peaked as freight rates started to decline during the quarter due to weakening customer demand, coupled with markets beginning to normalize with less supply-chain disruptions and progressive release of congestion," the company said.

The Danish shipping giant reported a quarterly net profit of $8.88 billion, up from $5.44 billion, as revenue rose 37% to $22.77 billion. A FactSet poll had seen net profit at $7.89 billion on revenue of $21.57 billion.

Revenue at its shipping unit rose 38% to $18.02 billion, driven by a 42% increase in freight rates. However, shipping volumes dropped 7.6% amid weakening demand and operational challenges, it said.

Underlying earnings before interest, tax, depreciation and amortisation is still seen at around $37 billion and underlying earnings before interest and tax at around $31 billion, it said.

Given the unfolding economic slowdown, which is expected to continue into the coming year, Maersk now sees growth in global container demand this year at between -2% and -4%, compared with its previous view at the lower end of its range between plus and minus 1%.


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

11-02-22 0403ET