[150912.EN.SEA] CMA CGM Back In Black In Second Quarter, Expects Profit For Full Year

FRENCH shipping giant CMA CGM, the world's third largest container carrier, posted a second quarter US$178 million net profit after suffering a $248 million loss in the first three months of the year, a gain attributed to a "substantial "upturn in freight rates".

CMA CGM is privately held so not required to disclose financial results, but typically does so in its own eclectic way on a quarterly basis.

"During the quarter, CMA CGM's revenue rose by 12 per cent year-on-year to $4.1 billion, reflecting a sharp acceleration in business growth. In all, 2.7 million TEU were carried during the period, up eight per cent over second-quarter 2011," said a company statement.

"Following a first quarter that was challenging for the entire maritime container shipping industry, second-quarter 2012 saw a clear improvement in the market environment with a very substantial upturn in freight rates," said the CMA GGM statement.

The group said it also continued to implement its action plan, which has delivered $294 million savings over the first six months of 2012, well ahead of the initial $400 million target for the full year.

"The second quarter's favourable 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," said the company statement.

The line has one of the smallest order books in the liner carrier industry, with an equivalent of less than four per cent of its current fleet on order.

CMA CGM is the world's third largest container shipping company, behind Copenhagen's Maersk and Geneva's MSC, operating 394 vessels that serve more than 400 ports. In 2011, it carried more than 10 million TEU and had a presence in 150 countries through its network of 650 agencies and branch offices and employs 18,000 worldwide.

Source : HKSG.