CMA CGM back in black, sales soar 41pc to US$6.7 billion

MARSEILLES shipping giant CMA CGM, the world`s third largest container line, has posted 266.7 per cent first half net profit increase of US$864 million, reversing a $518 million loss in the same period last year.

Profit was drawn on first half revenues of $6.7 billion, up 41 per cent on last year`s sales of $4.7 billion. Ebita was up 285 per cent to 1.05 billion, reversing a loss of $568 million in the same period.


Container throughput in the first six months of the year increased 22.2 per cent to 4.4 million TEU from 3.6 million TEU in the same period last year.


The announcement was made at a board meeting under the chairmanship of company founder Jacques Saade, when it was announced that financial recovery began in late 2009 and gained further momentum in the first six months of 2010.


"Results reflect the group`s strategic decision to invest in large containerships and to deploy a cost-reduction plan. Other contributing factors were the upturn in the global economy, which drove an increase in both volumes carried and freight rates, and the strong commitment of all of the group`s teams," said a company statement.


With its international presence through its own network of agencies, especially in China, CMA CGM said it was "ideally positioned to strengthen its role as a leading global operator in its different markets".


The company said it would continue to expand its fleet, having taken delivery of six newbuildings in July and August. These included two 13,800-TEU vessels (the CMA CGM Amerigo Vespucci and the CMA CGM Corte Real) and two 11,400-TEU ships (the CMA CGM Leo and the CMA CGM Pegasus). These ships have been chartered, bringing the total fleet to 394 units, of which 93 are owned.


"Competition remains sustained in a still uneven global economy," said the CMA CGM statement accompanying the results. "In the second half, the group will continue to reduce costs to optimise its business model and consolidate growth on reinforced financial bases. In this regard, CMA CGM is pursuing its discussions with investors with the objective to reinforce its equity."