Copenhagen, Denmark – A.P. Moller – Maersk (OTC: AMKBY) reports a second quarter of 2023 ahead of expectations, while the ongoing market normalisation continued through the quarter leading to lower volumes and lower rates. Revenue stood at USD 13.0bn compared to USD 21.7bn in Q2 2022 while profitability was strong at 12.4% although significantly lower compared to the extraordinarily strong Q2 2022. Reflecting the strong first half performance, Maersk raises its financial outlook and now expects underlying EBITDA of USD 9.5 – 11.0bn (previously USD 8.0 – 11.0bn), underlying EBIT of USD 3.5 – 5.0bn (previously USD 2.0 – 5.0bn) despite a weakened second half market outlook.
Ocean revenue decreased to USD 8.7bn from USD 17.4bn driven by a decrease in freight rates and loaded volumes. While the volume and rate environment stabilized at a lower level during Q2, Ocean continued to be impacted by lower demand, driven by a significant inventory correction in particular in North America and Europe. A strong cost management allowed to partially offset the top line impact on financial performance in Ocean.
Revenue in Logistics & Services was USD 3.4bn compared to USD 3.5bn. The segment was also impacted by lower volumes due to the continued destocking and weaker consumer demand, as well as low rates. As in Ocean, market demand is expected to continue to be subdued as long as the inventory correction is ongoing.
Revenue in Terminals decreased to USD 950m from USD 1.1bn and was influenced by the normalisation of storage revenue and lower volumes amid lower consumer demand and less congestion in North America. Strong cost control contributed to a continued solid financial performance.
The Boeing Company [NYSE: BA] reported second-quarter revenue of $17.0 billion, driven by higher commercial airplanes and services volume. GAAP earnings per share of $1.00 and core earnings per share (non-GAAP)* of $0.40 primarily reflects higher commercial volume and lower period costs (Table 1). Boeing recorded operating cash flow of ($0.5) billion.
“We continued to make important progress in the second quarter as we focus on driving stability across our operations and transforming our business for the future,” said Boeing President and Chief Executive Officer David Calhoun. “While our commercial market environment is improving, we’re closely monitoring COVID-19 case rates, vaccine distribution and global trade as key indicators for our industry’s stability. As we continue to position for a robust recovery, we remain committed to safety and quality, while investing in our people, products and technology. I am proud of our team’s resilience and commitment as we work to rebuild trust, improve our performance and deliver for our commercial, defense, space and services customers.”
As part of Boeing’s ongoing focus on global sustainability, the company published its first integrated Sustainability Report in July. “This was an important step in our continued efforts to reinforce our Environmental, Social, and Governance principles,” Calhoun said.
Click the link below to read the full press release!
A Tesla logo on a Model S is photographed inside of a Tesla dealership in New York
Tesla Inc <TSLA> has cut prices of its electric vehicles by as much as 6% in North America following a decline in auto demand in the region during weeks of lockdown that have now started to ease.
Tesla also said its Supercharger quick-charging service will no longer be free to new customers of its Model S sedans and Model X sport utility vehicles (SUV’s).
Auto retail sales in the United States likely halved in April from a year earlier, showed data from J.D. Power. However, sales in May are likely to improve due to pent-up demand and incentives offered by most carmakers, the analytics firm said.
Automakers including General Motors Co <GM>, Ford Motor Co <F> and Fiat Chrysler Automobiles NV <FCAU>, are offering 0% financing rates and deferred payment options for new purchases.
Factories in the United States started to reopen earlier this month with suppliers gearing up to support an auto industry employing nearly 1 million people.
Tesla was briefly forced to stop work at its Fremont, California, factory due to stay-at-home orders. It resumed production after resolving a dispute over safety measures with local authorities.
On Wednesday, Tesla website’s showed the starting price for its Model S sedan is now $74,990, down from $79,990.
Its Model X SUVs are now priced at $79,990, from $84,990, and the lowest-priced Model 3 sedan is $2,000 cheaper at $37,990.
Tesla said it will also cut prices in China – as per usual after price adjustments in the United States – by around 4% for the Model X and Model S.
Tesla China, which is delivering Model 3 sedans from its Shanghai factory, in a Weibo post said it has also cut prices for the Model S and Model X cars it imports, but will keep prices of locally made Model 3 cars unchanged.
(Reporting by Yilei Sun and Brenda Goh; Editing by Tom Hogue and Christopher Cushing)
Qantas planes are seen at Kingsford Smith International Airport in Sydney, Australia
SYDNEY (Reuters) – Qantas Airways Ltd <QAN.AX> said on Monday it had advised Airbus SE <AIR.PA> and Boeing Co <BA.N> that it did not expect to take delivery of any new planes in the near term as it grapples with a plunge in demand due to the coronavirus pandemic.
The airline had expected to add three Boeing 787-9 jets to its fleet by the end of 2020 and to start taking delivery in August of the first of 18 Airbus A321neos due by 2022.
There is no longer a specific timeline for them to arrive because the market is too uncertain, a Qantas spokesman said, confirming a report on travel website Executive Traveller.
Many carriers around the world have grounded the bulk of their fleets and halted aircraft deliveries in response to the pandemic, leading Airbus and Boeing to cut production rates.
Qantas last week said it had shelved plans to order this year up to 12 A350s capable of the world’s longest commercial flights from Sydney to London. It said it was reviewing its fleet with the expectation that most international travel could take years to rebound.
More than 25,000 of the airline’s staff have been stood down until at least the end of June as the carrier is flying only 5% of its pre-crisis domestic passenger network and 1% of its pre-crisis international network.
An Airbus spokesman said his company did not comment on delivery schedules for airlines. Boeing did not respond immediately to a request for comment.
(Reporting by Jamie Freed; Editing by Himani Sarkar)
FILE PHOTO: Airbus CEO Guillaume Faury poses before Airbus’s annual press conference on full-year results
By Tim Hepher
PARIS (Reuters) – European planemaker Airbus issued a bleak assessment of the impact of the coronavirus crisis, telling the company’s 135,000 employees to brace for potentially deeper job cuts and warning its survival is at stake without immediate action.
In a letter to staff, Chief Executive Guillaume Faury said Airbus was “bleeding cash at an unprecedented speed” and that a recent drop of a third or more in production rates did not reflect the worst-case scenario and would be kept under review.
Airbus said it did not comment on internal communications.
The letter was sent to employees late on Friday, days before the company is due to give first-quarter results overshadowed by a pandemic that has left airlines struggling to survive and virtually halted jet deliveries since mid-March.
Airbus has begun implementing government-assisted furlough schemes starting with 3,000 workers in France, “but we may now need to plan for more far-reaching measures,” Faury said.
“The survival of Airbus is in question if we don’t act now,” he added.
Industry sources have said a new restructuring plan similar to its 2007 Power8 which saw 10,000 job cuts could be launched in the summer, but Faury indicated the company was already exploring “all options” while waiting for clarity on demand.
People familiar with the matter say Airbus is also in active discussions with European governments about tapping schemes to assist struggling industries, including state-guaranteed loans.
It has already expanded commercial credit lines with banks, buying what Faury described as “time to adapt and resize”.
FILE PHOTO: The corporate logo of Ford is seen at Brussels Motor Show
(Reuters) – Ford Motor Co <F> said on Wednesday its fourth quarter results will be hit by a pre-tax loss of about $2.2 billion (1.7 billion pounds) due to higher contributions to its employees pension plans.
The charge is largely related to a drop in discount rates, the company said, as that leads to an increase in the amount of money to be contributed for future pension benefits.
The U.S. automaker said it will record a $2 billion loss related to pension plans outside the United States and a $600 million loss associated with other post-retirement employee benefits plans globally.
However, the overall loss was offset by a $400 million gain associated with pension plans in the United States.
On an after-tax basis, the loss is expected to reduce Ford’s net income by about $1.7 billion in the fourth quarter. The loss will not impact the adjusted earnings per share as it is a special item, the company said.
(Reporting by Dominic Roshan K. L. in Bengaluru; Editing by Arun Koyyur)
Delta Air Lines, Inc. (NYSE: DAL) traded down 1.8% Tuesday shortly after its global affiliates announced a bid for an embattled airline.
In an early round of bidding against other international airlines, Air France-KLM proposed to buy a 49% stake in Malaysia Airlines. Its pitch outlined plans for a maintenance hub in the Southeast Asian nation.
The circumstances of the bid are not particularly positive. Malaysia Airlines has struggled to revive booking rates since two disasters in 2014 tanked its public trust. Flight MH370 mysteriously disappeared over the Indian Ocean, and flight MH17 was shot down over Ukraine. The Malaysian government has since sought a strategic partner to restore the airline’s image.
Why It’s Important
With a stake in Malaysian Airlines, Air France-KLM could improve the entity’s public trust issues — or it could be hampered by them. Either way, an affiliation may create risk for Delta.
El Al Israel Airlines is outsourcing operation of its main freighter route between Tel Aviv and Liege, Belgium, to Atlas Air Inc. under an extended charter arrangement.
Atlas, an aviation services company headquartered in Purchase, N.Y., said Tuesday it is leasing El Al a Boeing 747-400 all-cargo aircraft, operating it with its own crew and providing maintenance and insurance (ACMI) beginning this month.
El Al, a new customer for Atlas, is experiencing strong growth in demand across its freight network, according to the announcement. The Israeli carrier sells the space on the plane and covers expenses such as ground handling, landing fees and fuel.
No terms of the commercial cooperation were disclosed, but ACMI deals typically run for one to three years.
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Tesla owners in California can purchase a policy in as little as one minute via tesla.com/insurance. For new vehicle orders, customers can request a quote prior to delivery once a VIN has been assigned to their Tesla Account.
Tesla Insurance offers a convenient monthly payment with no hidden fees or charges. Customers may cancel or change their Tesla Insurance policy at any time.
American Airlines planes stand at Dallas-Fort Worth International Airport in Grapevine, Texas, on April 6, 2018. MUST CREDIT: Bloomberg photo by Patrick T. Fallon.
Terminal F projected to open as soon as 2025, Terminal C to be upgraded
DFW AIRPORT, Texas — Dallas Fort Worth International (DFW) Airport and American Airlines have announced plans to develop a sixth terminal, providing a long-term commitment from the airline and opportunities for businesses and customers in the fastest growing region in the United States.
The plans call for DFW to invest up to $3 to $3.5 billion in terminal improvements, including the construction of Terminal F and enhancements to Terminal C. The identified site south of Terminal D provides significant flexibility for phasing in the number of gates for Terminal F, with a long-term projection of up to 24 gates, as demand for additional facilities is warranted.
Design work for Terminal F will begin immediately. DFW and American will explore several different options for the layout of the Terminal F site. DFW and American expect the details to be finalized as part of a new airlines lease agreement for DFW that is being negotiated. DFW and American anticipate the investment to be financed by bonds and repaid through airlines rates and charges over the life of the bonds.
“Today’s announcement sets the stage for DFW Airport’s next 50 years,” said Sean Donohue, CEO of DFW Airport. “The new Terminal F and the expansion that could follow will provide the region with the growth it needs to compete with international business centers. The Airport is growing faster than ever, and it needs to keep pace with the Dallas-Fort Worth economy to provide jobs and connections for businesses and families. We’re grateful to Dallas Mayor Mike Rawlings, Fort Worth Mayor Betsy Price and Board Chairman Bill Meadows for their leadership. I want to especially recognize American for its commitment to DFW Airport. We look forward to working together to deliver what will be an efficient, modern terminal with a state-of-the-art customer experience.”
“This is an exciting day for American and our more than 31,000 team members who call Dallas-Fort Worth home. American enjoys a wonderful relationship with the City of Fort Worth, the City of Dallas and DFW Airport, and we thank Mayor Price, Mayor Rawlings, and Sean and the entire DFW team for being such great partners. DFW is American’s largest hub and a central gateway to our extensive international and domestic network. The plans we’re announcing today will allow for the continued growth of DFW and ensure the airport remains a premier gateway for American for many more years to come.”
— Doug Parker, American Airlines Chairman and CEO
“We look forward to accommodating the continued growth of our city and the region through infrastructure improvements and expansion at DFW Airport,” said Fort Worth Mayor Betsy Price. “We’re glad to see DFW’s anchor carrier, American Airlines, headquartered in Fort Worth, collaborate with the Airport to take this area to new heights. This new terminal will further fuel economic development and job growth in our region.”
“This is one of the most significant announcements in my eight years as mayor,” said Dallas Mayor Mike Rawlings. “The fact that American Airlines believes in the DFW International Airport Board and management enough to make this tremendous investment in the future of the Airport is something we should all celebrate. This will further solidify DFW’s standing as one of the best international airports in the world.”
The design of Terminal F is expected to accommodate a changing aviation industry as DFW utilizes innovative technologies to facilitate the movement of customers, maintain cost efficiencies for airlines and improve operational performance.
Terminal C is one of the Airport’s original terminals and opened in 1974. DFW and American plan to significantly improve the customer experience at Terminal C, bringing it in line with Terminals A, B and E, on which renovations were completed in 2018. Those renovations included redesigned check-in areas, larger security checkpoints, expanded concessions spaces, and improved lighting and flooring.
DFW Airport welcomed a record 69 million customers in 2018, and the Airport anticipates more passengers and air service to be added in the next two years than in the past two decades. In 2018, DFW announced 28 new destinations, giving it a larger domestic footprint than any other U.S. airport. Customers also have access to more than 60 international destinations from DFW, with double the number of European destinations and frequencies since 2015.
Over the past several years, American has expanded with additional DFW service, and by June 2019, the airline will operate more than 900 daily flights from the Airport. In total, customers have access to more than 230 nonstop destinations on American from DFW.
A 2015 economic impact study indicates DFW Airport contributes more than $37 billion to the Dallas-Fort Worth economy, with nearly 60,000 jobs at the Airport and more than 228,000 jobs created across the region. In 2018, DFW Airport awarded more than $150 million in contracts to small, women- and minority-owned businesses, and concessions agreements generated more than $155 million in revenues for disadvantaged businesses.
