CMA CGM profits up 43%
French container line operator CMA CGM has announced that its 2014 net consolidated profits rose by 43% over the previous year to USD584 million thanks to a growth in volume and significantly reduced costs.
Consolidated operating revenue for the company increased by 5.3% in 2014, compared with the previous year, to $16.7bn on an 8.1% volume increase to 12.2m teu, which CMA CGM said was mainly attributable to east-west gains.
Volumes carried rose by 8.1% year on year (y/y) to 12.2 million teu and revenues increased 5.3% to USD16.7 billion. However, but core EBIT (earnings before interest and tax) surged 28.8% to USD973 million.
The result was even more impressive considering that its $408m net profit in 2013 included a $301m gain from the sale of a 49% stake in its terminal operating subsidiary Terminal Link to China Merchants.
"CMA CGM's performance in 2014 was extremely robust. By combining operational excellence, disciplined financial management and innovation, we have delivered strong growth in results with one of the industry's highest margins and an even healthier balance sheet," said Group VP Rodolphe Saade.
The group, the third biggest container carrier worldwide, said that its strong operating performance was compounded by a sharp reduction in financial costs, which were halved from USD445 million to USD222 million, helped by a USD70 million gain from changes in the Euro-Dollar exchange rate.
The group sold off a 49 percent stake in terminal operator Terminal Link which it said helped boost profit for the year, but said it was expanding its logistics division with six new offices in the Middle East and Latin America.
It claimed that its cargo volume gains had largely outpaced those of the market, aided by sustained growth in the Asia-North Europe and Asia-North Africa trades.
Other cargo growth factors, it said, had included a reorganization of its African lines and inland logistical operations, the vigour of the US economy and an expansion of the business of its Asia-Pacific subsidiary ANL.
The company also said that vessel-sharing agreements with Hamburg Sud and the O3 partners in South and North America trades, along with the consolidation – subject to regulatory approval – of Iberian and Canary Island trade specialist OPDR would also produce benefits during the year. The group said it was driving even faster growth in 2015 through its membership of the recently launched Ocean Three alliance and new ships entering service during the year.
In addition to the delivery of six new 18,000 teu class ships this year and 12 9,400 teu vessels, CMA CGM announced that it was close to finalizing the order for three 20,600 teu ships for delivery in 2017.
