Tuesday, May 4, 2010

CMA CGM Expect Return To Profit This Year

Shipping Line Very Positive on First Quarter Results
Shipping News Feature

FRANCE – Marseille-based shipping line CMA CGM has stated that the improvement in its first quarter results over last year means that the group is certain that it will turn a profit in 2010 after last year’s disastrous results.

In the first quarter of 2010 the group reports that it shipped a total of 2.1 million Twenty foot Equivalent Units (TEU’s), up 22% from the same period in 2009 and 4% compared with first quarter 2008.

In addition, the company reports that after last year’s losses of over USD$1.4 billion, this quarter has seen CMA CGM make a net profit of around $270 million.

CMA CGM attributes this turn around to a good recovery in tonnages and rates, as well as a number of austerity measure imposed by management that has delivered around $800 million in savings.

This has seen CMA reduce the number of vessels it operates from 395 to 352, of which the company directly owns 85, with a number of others retired. However, despite this cut in vessels the lines capacity has been only marginally affected due to newer and bigger vessels coming into service.

The news has been greeted warmly by the group’s management, with Philippe Soulié, Chief Executive Officer of the CMA CGM Group, saying that: “In a market that has returned to growth in recent months, CMA CGM intends to strengthen its industry leadership by pursuing two priority objectives: to continue adapting its fleet and to complete the necessary strengthening of its financial structure.”