2023-07-12 07:36:44 ET
ZIM Integrated Shipping Services ( NYSE: ZIM ) -3.3% pre-market Wednesday after lowering full-year earnings guidance , driven primarily by continued weakness in freight rates across all the company's trades, particularly in the Transpacific, which is now expected to continue during this year's H2.
ZIM ( ZIM ) also expects lower than forecast volume growth, as demand remains "subdued."
The company said it now sees FY 2023 adjusted EBITDA of $1.2B-$1.6B billion and adjusted EBIT loss of $100M-$500M, compared to previous guidance for adjusted EBITDA of $1.8B-$2.2B and positive adjusted EBIT of $100M-$500M.
"While our second quarter results are broadly in-line with our expectations, we no longer anticipate an improvement in freight rates in the second half of 2023, consistent with seasonality, as previously assumed," President and CEO Eli Glickman said.
More on ZIM Integrated Shipping:
- Financial and valuation comparison to sector peers
- Analysis: ZIM Integrated Shipping: Time To Be Cautious
- Stock price return: Down 21% YTD, down 69.5% in the pasy 12 months
For further details see:
ZIM Integrated Shipping cuts full-year guidance, weighed by weak freight rates