MARSEILLES-based CMA CGM remained in the black despite a third quarter
loss of US$223.8 million, retaining a nine-month net profit of $13.2
million.
"The market's current overcapacity, combined with slower demand, is impacting our financial performance," said the carrier's chief financial officer, Michel Sirat.
CMA CGM handled 2.604 million TEU in the third quarter, up 10 per cent year on year. Volumes for the first nine months of 2011 rose 9.4 per cent to 7.42 million TEU.
The company said in a statement that this confirms "CMA CGM is benefiting from the size and modern technology of its ships."
Consolidated revenue of the world's third largest carrier was up 2.8 per cent year on year to $3,856 million. For the first three quarters, consolidated revenue grew 5.2 per cent year on year to $11,086 million. As a result, the carrier earned $672 million before interest, tax, depreciation and amortisation (EBITDA) in the first three quarters.
The shipping line was also able to maintain a sound cash position at $763 million as of September 30, with all of the year's capital expenditure already committed.
Said Mr Sirat: "Our size and our ultra-modern fleet are enabling us to successfully weather this situation and we have undertaken immediate, solid, effective measures to adjust to conditions ahead of the expected market turnaround in 2012."
The company announced in September a $400 million full-year cost reduction plan, which includes curtailing strings and capacity, renegotiating vessel charter rates, enhancing fuel efficiency and selling ships and container assets.
Although the global shipping suffers from overcapacity, CMA CGM "believes that the situation will change in coming months and expects to see an upturn in demand in 2012, led by persistent growth in container shipping, which is steadily gaining market share from other transport modes, and the market-driven moves to rationalise current shipping lines".
Also, facing the increasing pressure from the world's largest carrier Maersk, CMA CGM has signed an agreement with the second largest carrier MSC to form a partnership in running the Asia-Northern Europe, Asia-Southern Africa and South American trades.
"The market's current overcapacity, combined with slower demand, is impacting our financial performance," said the carrier's chief financial officer, Michel Sirat.
CMA CGM handled 2.604 million TEU in the third quarter, up 10 per cent year on year. Volumes for the first nine months of 2011 rose 9.4 per cent to 7.42 million TEU.
The company said in a statement that this confirms "CMA CGM is benefiting from the size and modern technology of its ships."
Consolidated revenue of the world's third largest carrier was up 2.8 per cent year on year to $3,856 million. For the first three quarters, consolidated revenue grew 5.2 per cent year on year to $11,086 million. As a result, the carrier earned $672 million before interest, tax, depreciation and amortisation (EBITDA) in the first three quarters.
The shipping line was also able to maintain a sound cash position at $763 million as of September 30, with all of the year's capital expenditure already committed.
Said Mr Sirat: "Our size and our ultra-modern fleet are enabling us to successfully weather this situation and we have undertaken immediate, solid, effective measures to adjust to conditions ahead of the expected market turnaround in 2012."
The company announced in September a $400 million full-year cost reduction plan, which includes curtailing strings and capacity, renegotiating vessel charter rates, enhancing fuel efficiency and selling ships and container assets.
Although the global shipping suffers from overcapacity, CMA CGM "believes that the situation will change in coming months and expects to see an upturn in demand in 2012, led by persistent growth in container shipping, which is steadily gaining market share from other transport modes, and the market-driven moves to rationalise current shipping lines".
Also, facing the increasing pressure from the world's largest carrier Maersk, CMA CGM has signed an agreement with the second largest carrier MSC to form a partnership in running the Asia-Northern Europe, Asia-Southern Africa and South American trades.