CMA CGM back in black with US$1.6 billion net profit in 2010

MARSEILLES-based CMA CGM, the world`s third largest container shipping group, has posted a 2010 net profit of US$1.6 billion against the previous year`s loss of $1.4 billion.

"All of the markets saw strong growth during the year. The Asia-Europe and intra-Asia lines enjoyed record business, while the Asia-US lines have now returned to pre-recession levels after having been severely impacted by the fall-off in world trade," said the CMA CGM statement.


Revenue increased 36 per cent to $14.3 billion, generated by higher volumes, improved rates and cost cutting. Compared to 2008, the carrier`s operating profits grew 99.5 per cent as volume rose 4.4 per cent, but revenue fell 5.3 per cent.


The group carried 9.04 million TEU last year, up 15 per cent year on year. It also increased its capacity by 17.7 per cent to 1.22 million TEU, representing 8.6 per cent of global capacity at the end of 2010.


The company added 20 new containerships, of which 12 are owned including eight with over 11,000-TEU capacity. Overall, the group runs a total of 396 vessels, of which 91 are owned.


Looking forward, the carrier expects to return to "normalised profitability in 2011".


Its restored chairman, Rodolphe Saade, said to be "consolidating" his leadership after a period in corporate exile, believes the group will continue to expand in 2011.


Since its issue of $500 million in redeemable bonds to the Yildirim Group is now finalised, he said "CMA CGM enjoys a stronger financial position that it intends to consolidate, in particular by diversifying its sources of financing".