Hapag-Lloyd Slashes Profit Forecast as Freight Rates Struggle to Recover

FILE PHOTO: Containers are loaded on to a Hapag-Lloyd ship at a terminal in Hamburg, Germany August 15, 2016. REUTERS/Fabian Bimmer/File Photo

FRANKFURT, June 29 (Reuters) – German container shipping line Hapag-Lloyd slashed its full-year profit forecast, saying that freight rates had recovered more slowly than expected while fuel and charter costs had ballooned.

“These developments cannot be fully offset by cost saving measures that have already been initiated,” it said on Friday.

Its stock plummeted 18 percent to 29.44 euros, their lowest level in more than three months.

May Story: Hapag-Lloyd Delays Recovery Hopes to Second Half of Year

It said it now saw 2018 earnings before interest, tax, depreciation and amortisation (EBITDA) coming to between 900 million and 1.15 billion euros ($1.05-1.34 billion), compared with 1.05 billion in 2017.

It had previously said it saw EBITDA rising this year.

($1 = 0.8581 euros) (Reporting by Maria Sheahan, editing by Louise Heavens)

(c) Copyright Thomson Reuters 2018.

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