CMA CGM 2018 profit down, but sales rise 11.2pc to US$23.4 billion
FRENCH shipping giant CMA CGM's full year consolidated profit fell to US$34 million from $697 million the year before, with current results drawn on 2018 revenues of $23
FRENCH shipping giant CMA CGM's full year consolidated profit fell to US$34 million from $697 million the year before, with current results drawn on 2018 revenues of $23.4 billion, up 11.2 per cent year on year.
The company also declared a $15 million fourth quarter loss in consolidated profit despite a 14.9 per cent revenue gain to $6.3 billion.
'In 2018, in a difficult environment, the group posted a sharp rise in volumes and a record revenue,' said CMA CGM chairman and CEO Rodolphe Saade.
'Despite an increase in oil prices, our recurring EBIT margin remains considerably above the industry average,' he said
In 2019, despite persisting geopolitical tensions, trade perspectives, the company is launching a $1.2 billion cost reduction plan, he said.
In 2018, volumes carried by CMA CGM rose 9.3 per cent compared to 2017 and for the first time exceeded 20 million TEU.
The price of fuel rose 33 per cent in 2018, strongly impacting core EBIT. Following an exceptional year in 2017, this core EBIT is $610 million, representing a core EBIT margin of 2.6 per cent.
The company has accelerated digital transformation, through the development of IoT and Artificial Intelligence, as well as partnership agreements related to blockchain.
The acquisition of Containerships, a leader in intra-regional transport in Northern Europe. CMA CGM thus strengthens its strategy aimed at densifying its intra-regional network,
'The delivery of the first containership powered by liquefied natural gas (LNG) which joined the fleet through its subsidiary Containerships, attests to the leading role of the CMA CGM Group in the industry's energy transition,' said the company.
CMA CGM also initiated a partnership with CEVA Logistics. On the occasion of CEVA's initial public offering (IPO) in May 2018, CMA CGM acquired an equity stake of 24.99 per cent, which was brought to 33 per cent in October.
CMA CGM also entered into derivative contracts between October 2018 and January 2019, enabling it to increase its economic exposure to more than 50 per cent of CEVA's capital.
In early 2019, CMA CGM launched a friendly Public Tender Offer on CEVA to develop a logistics offer complementary to the transport offer, allowing the group to provide its customers end-to-end solutions.
CMA CGM has 509 ships serving 420 ports worldwide on five continents. In 2018, it moved 21 million TEU. The group employs 37,000 in the world and 2,400 in its Marseilles headquarters and is present in 160 countries via 755 agencies.