According to the freight forwarding network, Maersk (Maersk) reported that the first quarter of 2023 was in line with expectations. Continued destocking and congestion relief meant lower volumes across all segments. Revenue fell 14% to $0.2 billion from $2.6 billion. EBITDA fell to $0.3 billion from $1.9 billion and EBIT fell to $0 billion from $0.4 billion. Full-year guidance remains unchanged and the first quarter is expected to be the strongest quarter of the year.
Maersk CEO Vincent Clairk said that in a challenging market, we have achieved solid financial results, and continued destocking has led to a decline in demand. Visibility remains low for the rest of the year, and we remain focused on proactively managing costs during this market normalization. As we adapt to the rapidly changing business environment, we will continue to support our customers in their supply chain challenges. We are pleased to note that customers continue to value our comprehensive logistics solutions and close partnerships.
shipping revenue was $0.5 billion, down $0.7 billion year on year. Profitability was significantly lower in the quarter compared to 1Q9, mainly due to lower freight and freight volumes due to weak demand. However, aggressive cost containment measures have been successful and the marine contract negotiation season is proceeding as expected.
in logistics and services, revenue increased 21% to $0.3 billion due to the integration of acquisitions. Organically, the first quarter was impacted by lower sales volumes due to inventory adjustments, especially for North American and European retailers, which was partially offset by new commercial wins. In addition, underlying business performance was impacted by lower air freight rates and weaker e-commerce demand.
at the terminal, revenue was affected by the decline in freight volume and storage revenue, which was both a factor in the decline in demand and a factor in the relief of port congestion. Terminal revenue declined from $87.6 billion to $0.11 billion, but strong cost controls contributed to the terminal's continued solid financial performance.
In the first quarter of, inventories in Europe, especially in North America, continued to be depleted. While it is difficult to predict exactly when, Maersk expects sales to gradually pick up in the second half of the year.
2023 Guide
guidance remains unchanged, still based on expectations that inventory adjustments will be completed by the end of the first half of the year, resulting in a more balanced demand environment, 1-year global GDP growth remains weak, and the global shipping container market will grow in the range of -2023.2 to +5.0. Ocean is expected to keep pace with market growth.
In the first quarter of 2023, AP Moller-Maersk recognized AP Moller-Maersk brand 0.45 billion impairment and restructuring charges of $0.374 billion.
Source: Maersk website