AP MOLLER- MAERSK TARGETS US$5BN PROFIT

Improved competitiveness through cost savings has helped the AP Moller-Maersk Group to dream of achieving a US$5billion profit from its operations this year. The shipping and oil group raised its 2010 profit forecast to around $5 billion in a statement issued last week, linking the winning strategy to cost cuts, higher freight rates and oil prices.

The upgrade from the previous full-year guidance of more than $4 billion stemmed mainly from higher container shipping rates and efficiency improvements, says Group Chief Executive Nils Smedegaard Andersen. More than half of the improvement in our (container shipping) results came from the cost side Andersen said, adding that freight rates remain below 2008 levels.

Maersk's report followed strong third-quarter results from Asian rivals such as China COSCO and Neptune Orient Lines , pointing to a sustained recovery from a dismal 2009 for shipping as global trade regains momentum.

Maersk sometimes seen as a barometer of world trade said the container shipping market continued to show positive development, though third-quarter growth was lower than in the preceding quarters.

The company is reported to have a container shipping fleet numbering 560 vessels. Its shipping division is being held as the star performer within the Group in contrast to its tanker unit which continues to remain in the red.