AP Moller-Maersk cut its 2008 profit forecast after a big drop in profits at Danske Bank yesterday, but its shares rose as investors saw hints that core operations performed as planned. The Danish shipping and oil group owns 20 per cent of Danske Bank, which earlier yesterday reported a 93 per cent drop in 2008 profit.
Maersk now forecasts a 2008 net profit of around US$3.4 billion instead of its previously announced range of US$4 billion to US$4.3 billion.
The company said the change meant its profit would drop by US$280 million and it would also take an additional US$220 million in impairment losses to write down goodwill on its stake in Danske to zero.
Maersk said it would take an additional US$300 million in impairment losses on non-current assets as some business units were affected by lower global growth, lower oil prices and declining asset values.
'The telling piece was that the group's business units developed as expected in the fourth quarter - people are taking some heart in that,' said Mark McVicar, an analyst at Dresdner Kleinwort.
'There was concern that the last two months of the year were very weak, but without these one-time charges they would have come right in the middle of their previous guidance.'
'They used to get a small dividend from Danske, and now that has been suspended. That's the only cash implication for them,' Mr McVicar said.
Maersk now forecasts a 2008 net profit of around US$3.4 billion instead of its previously announced range of US$4 billion to US$4.3 billion.
The company said the change meant its profit would drop by US$280 million and it would also take an additional US$220 million in impairment losses to write down goodwill on its stake in Danske to zero.
Maersk said it would take an additional US$300 million in impairment losses on non-current assets as some business units were affected by lower global growth, lower oil prices and declining asset values.
'The telling piece was that the group's business units developed as expected in the fourth quarter - people are taking some heart in that,' said Mark McVicar, an analyst at Dresdner Kleinwort.
'There was concern that the last two months of the year were very weak, but without these one-time charges they would have come right in the middle of their previous guidance.'
'They used to get a small dividend from Danske, and now that has been suspended. That's the only cash implication for them,' Mr McVicar said.