A.P. Moller – Maersk (Maersk) reported robust performance in the third quarter, with significant growth across its business segments and financial results well above last year’s figures. The primary driver was the Ocean segment, although both Logistics & Services and Terminals also contributed to improved earnings.
Following this strong quarter, along with solid container market demand and ongoing developments in the Red Sea, Maersk raised its financial guidance for 2024 on October 21st. The company now anticipates full-year underlying EBIT of USD 5.2 to 5.7 billion, up from the previous range of USD 3.0 to 5.0 billion.
Vincent Clerc, CEO of Maersk, stated, “This quarter, we once again supported our customers amid high volatility and low visibility. We reaffirmed our commitment to profitable growth and operational progress, achieving results across all business areas through a rigorous focus on cost discipline, productivity gains, and efficient asset utilization.”
He added, “In Logistics & Services, our targeted efforts resulted in steady margin improvements and growth through new customer acquisitions. In Terminals, we achieved further enhancements on top of already high performance. Our Ocean team adeptly navigated recurring network disruptions by leveraging our hub terminals and investing in capacity and equipment to mitigate supply chain impacts on our customers while optimizing unit costs.”
Ocean’s profitability improved due to higher freight rates and positive volume growth, leading to a 41% increase in revenue. However, network re-routing south of the Cape of Good Hope significantly affected the cost base, impacting bunker consumption and overall operating costs. These pressures were largely offset by efficient operational execution, resulting in an EBIT increase of USD 2.9 billion and a margin of 25.5%.
Logistics & Services experienced a strong third quarter with an 11% year-on-year revenue growth and a 7.2% sequential increase, driven by higher volumes across most products. Profitability continued to recover, with EBIT reaching USD 200 million—an increase of USD 64 million year-on-year—primarily from growth in Lead Logistics and Air, resulting in an EBIT margin of 5.1%.
Terminals showed strong top-line growth, particularly in North America, with revenue per move hitting record highs due to increased volumes, improved tariffs, and an advantageous product mix. As a result, Terminals achieved its highest EBITDA since Q1 2022, totaling USD 424 million, and finished the quarter with a ROIC (LTM) of 13.0%.
Financial Guidance for 2024
As announced on October 21, 2024, in light of the strong Q3 results and ongoing container market demand, Maersk has revised its financial guidance for the full year 2024, as detailed in the table below. The company now expects global container market growth for the year to be approximately 6%, up from the previous forecast of 4-6%. CAPEX guidance remains unchanged.