BUSINESS

Shipping giant Moller-Maersk sees 48 pct drop in profits

Staff Writer
Columbus CEO

COPENHAGEN, Denmark (AP) — Denmark-based shipping and oil group A.P. Moller-Maersk says it was "severely impacted by continued low economic growth" as it reported a 48 percent drop in its third quarter profit to $778 million.

The conglomerate said Friday lower oil prices and lower average container freight rates had hurt its earnings. Revenue dropped 17 percent to $10.11 billion, from $12.2 billion a year earlier.

CEO Nils S. Andersen said an expected full year profit of around $3.4 billion would reflect "good performance in very challenging oil and container shipping markets."

On Wednesday, its shipping unit Maersk Line said it will reduce its network capacity, postpone investments and shrink its global headcount by at least 4,000 jobs by the end of 2017.