Jun.07--Jefferies Group has predicted Maersk Line may report losses at the end of this year, as the container line’s proposed freight rate increases have been failing.
Maersk’s earnings could miss consensus estimates by about 30 percent in 2013, as the second and fourth quarters could be losses, according to the financial firm’s Maersk report. The third quarter could be profitable as a result of capacity discipline, although leading volume indicators are showing bearish signs, Jefferies Group said in a written statement.
“Container volume growth is in a structural slowdown, in our view, and Maersk Line may not grow its market share without triggering a price war,” the report said. “Energy has become the bread-winner for Maersk, but the wells could run dry soon.”
(Source:JOC) |
