Maersk Line expects results only in 2009

A.P. Moller-Maersk’s container shipping arm, Maersk Line, is expected to earn a small profit this year, before it sees "satisfying" profitability in 2009.
"We expect a small profit in 2007, further improvements in 2008, but probably see a result we regard as satisfying in 2009", the Division Manager, Mr Eivind Kolding, told a Danish daily.
In the past, Maersk Line generated more than half of the group’s sales, but recently the company suffered losses following the integration of P&O Nedlloyd, which it acquired in 2006.
Mr Kolding said rising bunker costs and falling freight rates have also added to the weak results. Offsetting this, freight rates had gone up, he said.
The division chief also revealed that a recent move by A.P. Moller-Maersk to re-deploy ships operating on unprofitable routes between Europe and the US to the more lucrative and fast growing Asia-Europe lines is helping to return the company to profitability.
The group’s strategy now focuses on profit rather than growth, after losing market share on the international US trade routes, according to The Exim News Service.

Source: Transportweekly