Peter T. Leach, Senior Editor | Aug 03, 2012 10:08AM EDT
A.P. Moller-Maersk’s five-year plan of focusing on four core strategic businesses is already paying off, according to Group CEO Nils Smedegaard Andersen.
In the year since the strategy was launched, the company has committed more than $12 billion in investments in its four core businesses — Maersk Oil and Gas, Maersk Drilling, Maersk Line and APM Terminals.
In Maersk Post, the employee magazine published Friday, Andersen said Maersk Oil and APM Terminals are ahead of plans, and Maersk Drilling is progressing according to plans. However, Maersk Line’s container business is still disappointing.
“The development in container freight rates and profitability for Maersk Line has disappointed us, but we have taken a step back, initiated a restructuring plan and are working to get freight rates back to sustainable levels,” Andersen said.
He said, though, that the outlook for the year ahead looks more promising. “Although we are not as well positioned as we hoped to be a year ago, the early signs are positive, and I am optimistic that Maersk Line will be in a much stronger position in a year’s time,” he said.
Contact Peter T. Leach at pleach@joc.com. Follow him on Twitter @petertleach.