The Board of Directors of France’s CMA CGM met under the chairmanship of Jacques R. Saadé, Chairman and Chief Executive Officer, to review the financial statements for the year ended 31 December 2012.
Consolidated revenue rose by 7% in 2012, to $15.9 billion from $14.9 billion in 2011, led by the 6% growth in volumes carried, to 10.6 million TEUs from 10.0 million in 2011.
During the year, CMA CGM implemented its action plan, generating a reported $800 million savings, well ahead of the initial target.
As a result, EBITDA improved by a sharp 82% year-on-year to $ 1,324 million, for an operating margin (EBIT) of 6.3%, the industry’s highest (as yet announced). Consolidated net profit stood at $361 million for the year.
In addition to this robust operating performance, CMA CGM has significantly strengthened its balance sheet with:
- Signing of the sale of 49% of Terminal Link for € 400m.
- Closing of $ 100 million equity injection from Yildirim
- Signing of $ 150 million equity injection from FSI (Fonds Stratégique d’Investissement)
- Closing of the agreement with its Banks regarding its debt restructuring.
Outlook
In early 2013, freight rates levels are higher than in early 2012. World demand is expected to vary by region, remaining weak inbound Europe but showing more positive trends elsewhere, especially in the United States, Russia and emerging markets (particularly in Asia, Africa and Latin America).
CMA CGM expects an operating performance for 2013 in line with 2012, based on current market conditions.
Rodolphe Saadé, CMA CGM’s Executive Officer, said, “2012 was an important year for CMA CGM, which delivered a very good performance. As we had announced, we also completed our financial restructuring and significantly strengthened our balance sheet with the sale of a new equity interest to FSI and an additional stake to Yildirim. We have therefore begun 2013 on solid foundations from which to pursue our growth.”
Financial highlights
2011 2012 % Change
Revenue in $ billions 14.9 15.9 +7%
EBITDA in $ millions 729 1,324 +82%
Net profit/(loss)* in $ millions (5) 361
ROIC (Return on Invested Capital) 4.9% 10.6%
Volumes carried, in TEU** millions 10.0 10.6 +6%
Shipping fleet 394 414 +5%
Fleet capacity, in TEU** millions 1,345 1,446 +8%
* Net income attributable to owners of the parent amount to $ 332m in 2012 versus $ -35m in 2011
** TEU = twenty-foot equivalent units