DFDS, the Denmark-based intra-Europe shipping line, reported lower third quarter profit and revenue on sharply lower container and roll-on, roll-off traffic across its pan-European network.
Pre-tax profit fell to $35.6 million in the three months to Sept. 30 from $51.2 million a year ago on revenue 19 percent lower at $360 million.
Nine month revenue slipped to $1.3 billion from $1.64 billion and profit shrunk to $87 million from $93 million in the year-earlier period.
DFDS said it is sticking to its forecast of a full year pre-tax profit of "around zero" due to uncertainties over chartered tonnage and customer agreements and price competition in its passenger shipping business.
DFDS chief executive Niels Smedegaard said the third quarter result was better than expected with ro-ro revenue ahead of forecast and the rate of decline in freight rates slowing down.
But "it is not our impression that a recovery is around the corner and many customers and business partners are still facing a lot of pressure," Smedegaard said. “This means that we are still exposed to counter party risk, for example, in connection with chartered out tonnage."
Container shipping revenue slumped 32 percent in the third quarter from a year ago to $57 million and profit shrunk 58 percent to $2.2 million. Ro-ro revenue was 21 percent lower at $160 million and profit was down 36 percent at $26.4 million.
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