AP Moller - Maersk A/S says demand is improving faster than anticipated and increased its earnings projections for the year.
Maersk also says it will sack 2,000 employees in cost cutting.
The largest container shipping group in the world, which handles around one in five containers transported, said that although shipping volumes were declining, it had picked up more than estimated after dropping sharply during the peak of the world health crisis.
After it increased its full-year outlook, Maersk warned it will take around $100 million in a restructuring charge in the third quarter to deal with the cost of ending 2,000 job positions. The company said full-year revenues before interest, tax and amortization was now estimated to be $7.5 billion and $8 billion before the job cuts from a previous $6 billion to $7 billion.
The Danish ship company said Tuesday it would be letting go of 2,000 workers from its logistics business following the announcement of a revamp Sept. 1 where its Damco and Safmarine brands are being scrapped.
Volumes in Maersk's primary shipping unit dropped 3% in the latest quarter compared with the previous year - which is moderately better compared with the middle- to single-digit contraction the company had earlier estimated.
Maersk, which currently employs 80,000 staff, has been under pressure from shareholders to complete a restructuring that started in 2016 when the group split its logistics and shipping operations from its energy division, The Wall Street Journal reported.
According to Maersk chief executive officer Soren Skou, the company's forecast for next year remained in doubt because of the world health crisis. The positive effect from stimulus programs may be less effective next year and possible new lockdowns will hamper demand and the timing of a potential vaccine will play a crucial role in 2021, he said.
