Volumes up, profit down at CMA CGM

The Board of Directors of CMA CGM Group, the world’s third largest container shipping company, met under the chairmanship of Jacques R. Saadé, Chairman and Chief Executive Officer, to review the financial
statements for the second quarter of 2014.
In the second quarter, in a market environment shaped by diverging developments in different regions:
 • Consolidated revenue amounted to USD 4.2 billion, up 3.7% year-on-year;
 • Volumes carried increased by 8.0% to 3.1 million TEUs;
 • Average revenue per TEU decreased by 3.9% over the period. CMA CGM believes that the sustained growth in volumes was mainly attributable to the development of the Group’s Asia-Europe and Africa lines, and of the Asia-Pacific lines of its subsidiary ANL.

As a result, the Group achieved record-high volumes for the period. In addition, CMA CGM has reduced costs per TEU by 4.8%, as well as fuel costs per TEU by 9.3%, which the company attributes to the combined effect of lower bunker consumption per unit and more moderate bunker prices. Core EBIT amounted to USD 204 million in the second quarter of 2014, versus USD 172 million in the prior-year period, representing an 18.4% increase.

Consolidated net profit came to USD 94 million, versus USD 268 million in the second quarter of 2013, with last year’s amount including a non-recurring USD 248 million in proceeds from the sale of the 49% stake in the port terminal operations subsidiary Terminal Link.

Following the arrival of the Danube, the first 9,000 TEU long-term charter vessel deployed on the Black Sea lines, the Elbe and Rhône vessels will be delivered to CMA CGM in the coming weeks. The freight rates remained volatile overall, with the usual high level of volumes at this time of the year helping drive current rate increases, according to the Group. On this basis, CMA CGM expects its third-quarter operating performance to be sustained.