By Vera Eckert
FRANKFURT (Reuters) – Container shipping firm Hapag-Lloyd said on Thursday net profit fell nearly 19% in 2024 and is expected to decline further this year, with U.S. tariffs and Houthi militant attacks on shipping in the Red Sea clouding the outlook.
The world’s fifth biggest container liner said President Donald Trump’s tariff policies were weighing on demand, while the timing of operators’ return to the Red Sea would be decisive for operational performance in 2025.
“The economic and geopolitical environment remains fragile. In this context, we anticipate earnings in 2025 to be lower than in 2024,” he said.
In a call with reporters, he said later that he expected the U.S. economic growth outlook to be reduced.
The company also proposed an 11.4% year-on-year cut in its dividend for last year to 8.20 euros per share. Shares in the group were down 8% at 1200 GMT.
Habben Jansen said there would not be a quick resolution of the Suez Canal crisis, with vessel owners forced to sail a costly alternative route around Africa to avoid attacks by Houthi militants in the Red Sea.
The company, which started the Gemini cooperation with rival Maersk in February, said it would keep a close eye on unit costs and develop its terminal business and onshore businesses in the current year.
It has ordered and arranged financing for 24 new ships from China.
Net profit at the group fell to 2.4 billion euros ($2.61 billion) in 2024 from 2.9 billion.
Earnings before interest and taxes for 2025 were forecast at between zero and 1.5 billion euros, against 2.6 billion posted in 2024.
($1 = 0.9180 euros)
(Reporting by Vera Eckert; Editing by Ludwig Burger and Jan Harvey)
