Maersk expects lower net result in 2008
SHIPPING: The Group's business units the operation in 4th quarter generally developed as expected. A number of these business units will, however, be affected by the lower global growth, lower oil prices and declining asset values.
In connection with the preparation of the annual report for 2008, so-called impairment tests are being made for certain assets. Based on this, it is expected that the annual report for 2008 will include impairment losses on non-current assets of approx. USD 300 million after tax.
The A.P. Moller - Maersk Group owns 20% of Danske Bank, and the lower result for Danske Bank will reduce the expected financial result for 2008 for the A.P.Moller - Maersk Group with approx. USD 280 million.
The A.P. Moller - Maersk Group's share in Danske Bank is included as an associated company at the share of equity value including goodwill on acquisition. As a consequence of the difficult conditions for the financial sector, the recognised goodwill on shares in Danske Bank is written down to zero. This impairment loss amounts to USD 220 million.
With the impact from Danske Bank of USD 500 million and the expected impairment losses of USD 300 million, in total USD 800 million, which do not affect the cash flow for the year, the expected net result for 2008 for the A.P. Moller - Maersk Group will change to be in the order of USD 3.4 billion (2007: USD 3.4 billion) compared to the expectations announced on 12 November 2008 in the order of USD 4.0 - 4.3 billion.
The annual report for 2008 has not yet been finalised. The report will be released on 5 March 2009.
Source: A.P. Moller-Maersk
