Sunday, December 14, 2008

Spending on ice

Nils Andersen has slammed the brakes on all new investment at AP Moller-Maersk in light of the global economic slowdown.
AP Moller chief Nils Andersen.
The company has been hit by collapsing container rates and a crash in energy prices and will earn less money in the coming years, the group chief executive warns.
Speaking to the group’s official magazine, he said: “We want to free up cash to allow us to seize investment opportunities if they occur. We will run our business the next couple of years in a way where we do not need additional funds from banks.
“I fully understand how frustrating it must be if you have worked hard on a project that is now being postponed or canceled.
“However, even after reducing our investment plan, we’ll still be investing strongly above our depreciation level over the coming two years.”
Analysts say the move shows just how difficult the money markets are at the present time.
Jacob Pedersen of Sydbank said: “Maersk has a strong history of investing heavily, so this is a pretty drastic situation.”
By Andy Pierce in London

No comments: