Hapag-Lloyd is off to a good start in 2021 thanks to exceptionally strong demand for container and high rates.
Based on January's preliminary business data and current business conditions, the Company's Executive Board expects the first quarter 2021 performance metrics, EBITDA(earnings before interest, tax, depreciation and amortization) and EBIT(earnings before interest, tax, depreciation and amortization) to be substantially higher than the same period last year.
At the same time, the Executive Board expects EBITDA and EBIT for the full business year 2021 to significantly exceed prior year levels.
However, the forecast for the current year is subject to significant uncertainty due to a number of factors, including:
Freight rates are currently fluctuating more than average;
Operational challenges such as existing infrastructure bottlenecks;
And the inability to predict the future course or economic impact of a coronavirus pandemic.
Rolf Habben Jansen, CEO of Hapag-Lloyd said,“We will see a very strong result in the first quarter, but we anticipate a normalisation as the year progresses. We are still seeing slower container turn times, significant congestion in ports around the globe, capacity constraints in rail and truck, and the risks of the coronavirus pandemic remain. Nevertheless, we do also expect that the result for 2021 as a whole will be significantly higher than the prior-year level. At the same time, we will continue to keep our focus on our employees, serving our customers in the best possible way and the implementation of our Strategy 2023.”
More detailed information on the 2021 forecast will be published in conjunction with the 2020 Annual Report, which will be released on March 18, 2021.
For the first quarter, the operating profit (EBITDA) is expected to come to at least USD 1.8 billion. If this happens, it would be a significant improvement from the operating profit of USD 517 million in the first quarter of 2020.
However, the container line refrains from announcing its full-year 2021 guidance. In late January, the company presented preliminary financial figures, showing a profit of nearly USD 3 billion for 2020.
The final annual report is scheduled for publication on March 18.
Read this blog,do you have confidence in the logistics market 2021?
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