Connect with us

Hi, what are you looking for?

Oracle of  Omaha Says – Investing and Stock NewsOracle of  Omaha Says – Investing and Stock News

Editor's Pick

ZIM Integrated swings into a loss as demand eases: stock retreats

ZIM Integrated (NYSE: ZIM) results missed its revenue and profitability guidance as shipping rates continued weakening. The company also swung into a net loss in the first quarter of this year. 

In a statement, ZIM Integrated’s revenue plunged by 68% from the same period in 2022. Its revenue dropped to $1.37 billion as its carried volume fell by 10% to 769 TEU as the average freight rate dropped by 64% to $1,390.

ZIM Integrated left its forward guidance unchanged. It expects that its EBITDA will be between $1.8 billion and $2.2 billion this year. Its EBIT is expected to come between $100 and $500 million this year as it expects that it market conditions will improve. In a statement, the company’s CEO said:

“We continue to anticipate positive EBIT in 2023 despite macro and industry headwinds. Our expectation is for recovery in demand with inventory restocking to begin in the second half of this year, resulting in an improvement in freight rates.”

Shipping companies like ZIM Integrated, Maersk, Star Bulk Carriers, Matson, and Golden Ocean Group are struggling as the cost of shipping crashed. The closely watched Drewry World Container Index has crashed from almost $8,000 in May last year to $1,720.

Sadly, this situation could continue worsening in the coming months, as evidenced by the economic data. Early this month, data by the Chinese government shows that the country’s industrial production and trade numbers disappointed in April.

ZIM stock price has crashed by more than 72% in the past 12 months, which has pushed its yield to 96%. The stock fell by 4.85% in the pre-market.

The post ZIM Integrated swings into a loss as demand eases: stock retreats appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Everynet, one of the world’s largest network operators for national LoRaWAN® networks, announces it is working with Amazon Web Services (AWS) to offer long-range...


    As more candidates throw their hats into the 2024 Presidential ring, I’d like to offer a proposal that should have immediate bipartisan support: stop...

    Editor's Pick

    The Internet of Things (IoT) is changing the way we interact with technology, and it has the potential to revolutionize the way we manage...

    Editor's Pick

    Semtech Corporation and esteemed engineering design services firm, Connected Development, today announced the launch of the new XCVR Development Board and Reference Design integrating...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023