CMA CGM reports half year revenue increase of 8%

CMA CGM has reported revenue of $7.3bn for the first six months of 2011, an increase of 8% compared with the year-earlier period. Business benefited from an increase in volumes carried and stable freight rates on most of the Group’s lines. In all, more than 4.8m TEU were carried over the period, a 9.1% increase.

These figures reflected the firm demand observed over the period in most of the markets where CMA CGM holds strong positions, with improved freight rates on the South American and Caribbean lines (up 5%), the Transatlantic lines (up 6%) and the Transpacific lines (up 11%) amply offsetting the Asia Europe and Mediterranean trades.

The Group continued to deploy the cost-control initiatives undertaken in 2009 and 2010. Despite high oil prices, which pushed up fuel costs by 36% over the period, the consolidated net profit stood at $237m (including the impact of asset disposals), lower than in first-half 2010, which saw record profitability across the container shipping industry.

During the first half of 2011, CMA CGM Group sold an equity stake in the company by issuing $500m in ORA equity notes to the Yildirim Group and raised an aggregate $945m through two bond issues denominated in dollars and euros. This completed the plan to bolster the balance sheet, as approved at the beginning of the year. Also over the period, the Group financed most of its 2011 and 2012 capital expenditure plan. As of June 30, 2011, the Group had $1.7bn in cash, before the early redemption of two bond issues in July, in a total amount of $550m.

CMA CGM Group plans to develop its strategic positions in emerging markets, with a focus on Russia and India. In addition, it will pursue expansion in Latin America, where it will benefit fully from the 2014 opening of the Panama Canal’s third set of locks. The Group’s new hub, in Kingston, will be ideally located to capitalise on the new opportunities.

In commenting on the company’s half year results, Rodolphe Saadé, Executive Officer said: "Our first-half performance was very satisfactory, both operationally and in regard to the strength of our balance sheet. We drove faster growth in freight volumes than the competition, while demonstrating the effectiveness of our strategy by raising nearly a billion dollars from leading international institutional investors. Although the current global economic situation calls for caution, we remain confident in our ability to further strengthen our positions thanks, in particular, to our modern, efficient fleet and the quality of our extremely professional teams, which enable us to take a calm view of both the medium and the long term."

Quelle: eyefortransport
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