Shares in Danish shipping giant AP Moller-Maersk (APM) slipped by 7% to a 52-week low after the company on 23 October issued a profit warning due to weaker-than-foreseen container shipping development.
By mid-morning local time, APM shares traded at DKK9,740 (USD1,450.20), down 7% from the opening of trading in Copenhagen in the morning. The price is below the company's previous 52-week low of DKK9,815 and significantly below the 52-week high of DKK16,450.
Shares in Danish shipping giant AP Moller-Maersk (APM) slipped by 7% to a 52-week low after the company on 23 October issued a profit warning due to weaker-than-foreseen container shipping development.
By mid-morning local time, APM shares traded at DKK9,740 (USD1,450.20), down 7% from the opening of trading in Copenhagen in the morning. The price is below the company's previous 52-week low of DKK9,815 and significantly below the 52-week high of DKK16,450.
"The container shipping market has deteriorated beyond the group's expectations, especially in the later part of 3Q15 and October, and the group does not expect market recovery in 2015," APM said in a statement this morning.
"As a consequence of the deteriorated market, the group today adjusts its expectation for the 2015 result from an underlying result around USD4 billion to an underlying result of around USD 3.4 billion," APM said.
Maersk Line is now expected to produce an underlying result of USD1.6 million: a reduction of USD600 million from the previous forecast.
Shipping analysts IHS Maritime & Trade has recently warned that the construction of even larger container vessels in search of economies of scale during times of weak demand could delay cyclical recovery in the sector.
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