FRENCH shipping giant CMA CGM has reported growth in revenue, container volumes and net profit for the 2019 third quarter as compared with the corresponding quarter last year.
The board of directors recently met under the chairmanship of Rodolphe Saadé, chairman and chief executive Officer, to review the financial statements.
The key statistics were:
- 5.1% growth in volumes carried
- Revenue rose 25.8% year on year to reach US$7.6bn
Growth in container volumes was said to have come primarily from the short sea business.
Ongoing deployment of the “performance improvement plan” was reported to have delivered a further reduction in unit operating costs of US$25 per TEU, compared with the second quarter of 2019 and of US$89 per TEU compared with the third quarter of 2018.
Net profit from shipping operations increased to US$158.9m, versus US$103.1m in the prior-year period. The Group’s profit in the third quarter represented US$45.4m.
CEVA Logistics’ integration is said to be proceeding “according to the strategic plan”, however, CEVA Logistics’ exposure to the automotive and technologies industries is said to be “dampening demand” in both the freight and the contract logistics services segments.
“The CMA CGM Group is pursuing its actions to reinforce its operational efficiency and cost discipline in its shipping business,” a company statement read.
In its logistics business, the group confirmed profitability targets previously announced for CEVA Logistics but set effects to 2023/2024 due to “the challenging environment” in certain industrial sectors.
“The group is confident in its 2019 performance, which will show an improvement compared with the prior year,” the CMA CGM statement read.
CMA CGM is a significant player in the Australian shipping sector and is also the parent company of ANL.
