Monday, September 10, 2012
CMA CGM's Q2 fortunes improve; forecasts full-year profit
France's shipping giant, CMA CGM, posted improved financial results that the ocean carrier said followed "a first quarter that was challenging for the entire maritime container shipping industry" on the back of "a very substantial upturn in freight rates," and expects to end the year in the black.
After reporting a net loss of $248 million in the first quarter of 2012, CMA CGM swung to $174 million net profit in its second quarter, with revenue up 12 percent year-on-year to $4.149 billion, and 2.7 million TEUs carried – up 8 percent over the same period last year; a slight rise over the 2.6 million TEUs the carrier shipped the previous quarter.
CMA CGM reported earnings before taxes, depreciation and amortization of $460 million for the second quarter that the shipping group said resulted in an 11 percent margin, claiming it was "the industry's best performance."
The French shipping line said in a statement that the quarter "delivered $294 million savings over the first six months of 2012, well ahead of the initial $400 million target for full-year cost savings."
"The second quarter's favorable trends have continued since July, and the Group expects that its operating and financial performance will still be highly positive in the third quarter. As a result, it has confirmed its forecast of reporting a profit for the full year," the shipping line said.
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