Denmark's A.P. Moller-Maersk upgraded its earnings guidance for the full year on Thursday, saying its container shipping business had rebounded faster than expected.
After diving to a loss in 2009, the group -- which includes the world's biggest container shipping company Maersk Line -- said in early March it expected a "modest profit" in 2010.
"The improvement of especially the container business has since then been greater than envisaged and the company now expects that the profit for 2010 will exceed the profit for 2008 (which was $3.5 billion corresponding to 17.6 billion Danish crowns at the time), provided that freight rates, oil prices and the USD exchange rate remain stable at current levels," it said.
The upgraded expectation includes an accounting gain from a previously announced sale of shares in the Yantian port terminal in China which has been closed, Maersk said.
The conglomerate's sale of its Netto Foodstores Limited in the UK is still subject to approval from the British competition authorities, and a possible gain from that sale has not been included in the new estimate, Maersk said.
"The outlook for 2010 is still subject to considerable uncertainty, not least due to the development in the global economy," it said. "Specific uncertainties relate to the container freight rates, transported volumes, U.S. dollar exchange rate and oil prices."
Earlier this week, Germany's TUI AG raised its outlook for its container shipping company Hapag-Lloyd, a Maersk competitor, saying that transport volumes and freight rates had continuously improved. hat news had lifted Maersk shares.
Maersk's guidance upgrade comes ahead of half-year results due on Aug. 18.
A.P. Moller-Maersk's B-series shares closed at 51,100 crowns on Wednesday. Trade on the Copenhagen bourse resumes at 0700 GMT.
After diving to a loss in 2009, the group -- which includes the world's biggest container shipping company Maersk Line -- said in early March it expected a "modest profit" in 2010.
"The improvement of especially the container business has since then been greater than envisaged and the company now expects that the profit for 2010 will exceed the profit for 2008 (which was $3.5 billion corresponding to 17.6 billion Danish crowns at the time), provided that freight rates, oil prices and the USD exchange rate remain stable at current levels," it said.
The upgraded expectation includes an accounting gain from a previously announced sale of shares in the Yantian port terminal in China which has been closed, Maersk said.
The conglomerate's sale of its Netto Foodstores Limited in the UK is still subject to approval from the British competition authorities, and a possible gain from that sale has not been included in the new estimate, Maersk said.
"The outlook for 2010 is still subject to considerable uncertainty, not least due to the development in the global economy," it said. "Specific uncertainties relate to the container freight rates, transported volumes, U.S. dollar exchange rate and oil prices."
Earlier this week, Germany's TUI AG raised its outlook for its container shipping company Hapag-Lloyd, a Maersk competitor, saying that transport volumes and freight rates had continuously improved. hat news had lifted Maersk shares.
Maersk's guidance upgrade comes ahead of half-year results due on Aug. 18.
A.P. Moller-Maersk's B-series shares closed at 51,100 crowns on Wednesday. Trade on the Copenhagen bourse resumes at 0700 GMT.