APM Terminals Boosts Profit 60 Percent in 2010

APM Terminals Boosts Profit 60 Percent in 2010

APM Terminals boosted earnings 60 percent in 2010 from the previous year as profit from the disposal of a stake in China's Yantian terminal outweighed the loss of global market share.

The A.P. Moller-Maersk subsidiary booked a profit of $793 million compared with $494 million in 2009 on unchanged revenue of $4.3 billion.

The result was bolstered by a $423 million pre-tax gain from the Yantian transaction.

Profit excluding sales gains increased 14 percent to $492 million.

APM boosted traffic just 2 percent to 31.5 million 20-foot equivalent units from 30.9 million TEUs in 2009, trailing overall market growth of around 13 percent.

Traffic grew 7 percent adjusted for discontinued operations at six ports: Oakland and Savannah in the U.S., Yantian, China; Kaohsiung, Taiwan; Voltri, Italy; and Dunkirk, France.

The share of traffic from carriers other than A.P. Moller-Maersk's Maersk Line and Safmarine units rose to 44 percent from 41 percent.

Construction of a new port terminal in Cai Mep, Vietnam, is nearing completion, and operations will commence in early 2011.

The company expanded and upgraded several terminals in 2010 to keep pace with demand, most notably the Suez Canal Container Terminal in Port Said, Egypt; Aqaba Container Terminal in Jordan; and facilities in Lagos, Nigeria; and Luanda, Angola.

APM signed agreements during the year to establish terminals in Santos, Brazil; and Monrovia, Liberia.

The Santos terminal is scheduled to start operations in 2012 with an annual capacity of 2.2 million TEUs.

-- Contact Bruce Barnard at brucebarnard47@hotmail.com.