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France: CMA CGM reports $30 million losses in 2011

CMA CGM has reported net losses of USD $30 million for the year ending December 2011, following a year of $1.6 billion profit in 2010.

Revenues increased by 4 percent to $14.87 billion, while volumes carried by the shipping line reached a record high of just over 10 million TEU, an increase of11 percent.

The French shipper earned $711 million before interest, tax, depreciation and amortization (EBITDA) in 2011. CMA CGM’s EBITDA stood at $2.5 billion in 2010.

Although CMA CGM suffered significant losses during the 2011 calendar year, the figure is still noticeably lower than that that of other rivals. Maersk Line, the world’s largest ocean carrier and Chilean shipper Compañía Sudamericana de Vapores (CSAV), announced respective losses of $602 million and $1.24 billion last year.

“Once again this year, CMA CGM has demonstrated its strong resilience at a time of intense turmoil in our industry,” said CMA CGM Group Executive Officer, Rodolphe Saadé.

“Our operating and financial performances were among the best in the industry.”

Although the beginning of 2012 was difficult for the entire industry, “freight rates are now trending upwards, especially outbound Asia,” noted CMA CGM.

The company is now going to be following a cost reduction plan in a bid to save $400 million in 2012 and expects to post a profit this year.

“We set up strategic operating partnerships with MSC and with Maersk to address market challenges and maintained our commitment to controlling costs,” added Saadé.

“We expect the market to improve in 2012, particularly in the second half. With its modern, efficient fleet and its skilled, experienced teams, CMA CGM is well positioned to capture all of the benefits.”

Source: www.porttechnology.org

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