Street Calls of the Week
Investing.com -- German shipping and container transportation company, Hapag-Lloyd, reported an increase in its first-quarter revenue and earnings on Wednesday. Despite this, the company maintained a cautious outlook for the entire year.
Preliminary revenue for the first quarter was reported at 5.1 billion euros ($5.81 billion), a rise from 4.3 billion euros in the same quarter of the previous year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to 1 billion euros from 900 million euros. Additionally, earnings before interest and taxes (EBIT) rose to 500 million euros from 400 million euros.
The company attributed this growth to an increase in transport volume and average freight rate, both of which were 9% higher on year due to strong demand.
Despite the positive first-quarter results, Hapag-Lloyd continues to expect lower results for the entire year. The company cited the ongoing tense situation in the Red Sea and the global trade conflict as potential factors that could significantly impact supply and demand in container shipping, and consequently, the company’s yearly results.
For the year, Hapag-Lloyd continues to expect EBITDA in the range of $2.5 billion to $4.0 billion. The company’s shares remained largely unchanged in early German trading following the announcement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.