CMA CGM Holds Firm in Difficult Environment

(Press Release)
Friday, December 02, 2011

 Volumes carried rose by 10% year-on-year to 2,604 million teus in the third quarter of 2011, confirming that CMA CGM is benefiting from the size and modern technology of its ships. Over the first nine months of the year, volumes carried were up by 9.4%, for a total of 7.42 million teus. Consolidated revenue stood at $3,856 million for the quarter, up 2.8% over the prior-year period, and at $11,086 million for the first nine months, up 5.2% year-on-year.  At a time of market overcapacity and high oil prices, for the first ninemonths consolidated EBITDA remained positive at $672 million and the Group reported a net profit of $13.2 million.  At 30 September, the Group's cash position remained amply positive, at $763 million, with all of the year's capital expenditure already committed. 

Outlook and Action Plan: The global economic environment remains challenging and demand is still being impacted by overcapacity. Nevertheless, CMA CGM Group believes that the situation will change in the coming months and expects to see an upturn in demand in 2012, led by the persistent growth in the container shipping industry, which is steadily gaining market share from other transport modes, and the market-driven moves to rationalise current shipping lines. As announced last September, the Group has decided to deploy a vigorous action plan to reduce full-year costs by $400 million, which will deliver its full impact in 2012 It will involve rationalising lines and capacity, renegotiating vessel charter rates, implementing innovative technical solutions to improve vessel fuel efficiency,  and continuing to implement the ship and container asset disposal program. In addition, CMA CGM has announced the creation of a leading partnership with MSC, the world's second largest container shipping group. The operating agreement, which concerns the Asia-Northern Europe, Asia-Southern Africa and South American trades, is designed to substantially improve the Group's performance and generate major operating synergies.

 

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