The decline in world economy will affect the flagship of Danish business A.P. Moller-Maersk particularly hard.
The decline in world economy will affect the flagship of Danish business A.P. Moller-Maersk particularly hard. That is what the finance cooperation Carnegie predicts in a new analysis, concluding that Maersk will loose half of its profit in 2009. "We expect that the earnings of the group can drop heavily to an annual result of 11 billion DKK in 2009. There is no doubt that every department will be looking high and low for opportunities to save money, in staff as well as other areas", says Henrik Lund, chief analyst at Carnegie.
Especially Maersk Line is expected to be heavily affected by a large billion deficit and the total profit of the concern will drop by 10 billion DKK.
"Especially Maersk Line has been hit and it will be worse in 2009. There are fewer containers to ship and the cargo rates have decreased severely. On Maersk Line's main service from Asia to Europe the rate is 46 percent lower than twelve months ago, which is causing losses. Even Danish Supermarket will be affected by the weak English pound and with regards to oilprices, there is obviously a big difference between a price of 150 dollar a barrel or approximately 40 dollar, as it is now", says Henrik Lund.
Earnings in 2009 are also pressed by the decreasing oil prices, drop in important currencies and particularly low earnings in Danish Bank.