24-05-2016

CMA CGM posts US$100 million net loss as revenue declines 26pc

CMACGM

FRENCH shipping giant CMA CGM reported a first quarter net loss of US$100 million (after a $406 million profit last year), drawn from this year's revenues of $3.4 billion, down 15 per cent.

Yet the Marseilles-based company, the world's third biggest container shipping line after Maersk and MSC, came in with a quarterly operating profit (EBIT) of $3 million, down 26 per cent year on year.

CMA CGM also increased quarterly container volume 2.9 per cent to 3.2 million TEU, beating the market average that grew 1.2 per cent.

The Marseilles-based company attributed gains to transatlantic and transpacific growth to and from the United States, which offset the decrease in volumes carried between Asia and Europe.

Because of low freight rates, average revenue per box fell 17.6 per cent, reflecting the continuing supply-and-demand imbalance.

CMA CGM said it continued to implement its cost control policy, once again reducing its unit costs in the first three months of the year. 

"In a very difficult environment, we have in the first quarter recorded an increase in volumes above the market average while maintaining a positive core EBIT margin," said CMA CGM vice-chairman Rodolphe Saade.

"We will continue our strict financial discipline, including implementation of a significant cost reduction plan," he said.

"In addition, we are moving forward on our strategic projects, namely the proposed acquisition of NOL [Neptune Orient Lines] and the creation of a new operational alliance Ocean, with a launching anticipated in April 2017."

Source: Schednet

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