AP Moller-Maersk is to lay-off 2,000 in a previously announced restructuring as it reveals upgraded expectations for Q3 and its full year results.
The Danish shipping company announced on Tuesday that it would be laying-off 2,000 staff from its ocean and logistics business as result of restructuring announced on 1 September where the Safmarine and Damco brands are being retired, as well as a new global structure for Hamburg Sud. Maersk said it expected to take a $100m restructuring charge in Q3 as a result of the redundancies.
At the same time as announcing the lay-offs Maersk upgrade its expectations for its Q3 results and full year forecast.
“AP Moller-Maersk is on track to deliver a strong Q3 with solid earnings growth across all our businesses, in particular in Ocean and Logistics & Services,” Maersk ceo Søren Skou, said.
“Volumes have rebounded faster than expected, our cost have remained well under control, freight rates have increased due to strong demand and we are growing earnings rapidly in Logistics & Services. The outlook for Q4 is solid for the same reasons, and we are therefore able to upgrade our expectations for the full year.”
For Q3 Maersk expects revenues of around $9.9bn and an EBITDA of $2.4bn before restructuring costs. Full year EBITDA is now forecast at $7.5 – 8bn, compared to $6 – 7bn previously.
Despite better than expected results in 2020 looking further ahead into 2021 the outlook remains hazy.
“The outlook for 2021 remains uncertain due to the ongoing pandemic. The positive impact from stimulus packages may be less strong in 2021, potential new lock downs will impact demand and the timing and effectiveness of a potential vaccine will impact 2021,” said Skou.