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Shipping giant Moller-Maersk sees 48% drop in profits

AP Moller-Maersk said it was "severely impacted by continued low economic growth" as it reported a 48% drop in its third quarter profit to 778 million US dollars (£514 million).

The Denmark-based shipping and oil group said on Friday that lower oil prices and lower average container freight rates had hurt its earnings.

Revenue dropped 17% to 10.11 billion dollars (£6.7 billion), from 12.2 billion dollars (£8.1 billion) a year earlier.

CEO Nils S Andersen said an expected full year profit of around 3.4 billion dollars (£2.2 billion) would reflect "good performance in very challenging oil and container shipping markets".

On Wednesday, its shipping unit Maersk Line said it will reduce its network capacity, postpone investments and shrink its global headcount by at least 4,000 jobs by the end of 2017.

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