Trending: Maersk Suspends Share Buybacks and Warns on Earnings
1015 GMT - A.P. Moeller-Maersk is among the most-mentioned companies across news items over the past three hours, according to Factiva data, after the shipping giant suspended its share buyback and warned that earnings will fall sharply this year. The Danish company blamed uncertainty in the Red Sea and industry overcapacity that continues to drag on freight rates for its lower guidance. The news sent the shares diving to DKK10,965.0 earlier in the session. They are currently trading down 13% at DKK11,200.00 and are down 15% over the past 12 months. Maersk said that the re-initiation of its buyback will be reviewed once market conditions in its main shipping unit have settled. The company made the disclosure as it reported a swing to net loss for the fourth quarter of last year on revenue that fell 34%, although both metrics were better than analysts' forecasts. Maersk expects underlying earnings before interest, tax, depreciation and amortization this year of between $1 billion and $6 billion, having booked $9.8 billion in 2023. The company has also cut its dividend by 88% compared with 2022 levels. Dow Jones & Co. owns Factiva. (ian.walker@wsj.com.)
(END) Dow Jones Newswires
February 08, 2024 05:30 ET (10:30 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
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