The Board of Directors of France’s CMA CGM, the world’s third largest container shipping group, reported that consolidated revenue for the year ended December 31, 2012 rose by 7 per cent to $15.9 billion from $14.9 billion in 2011, led by a 6-per-cent growth in volumes carried, to 10.6 million TEUs from 10.0 million in 2011.
During the year, CMA CGM successfully implemented its action plan, which has generated $800 million in savings, well ahead of the initial target. As a result, EBITDA improved by 82 per cent year-over-year to $1,324 million, for an operating margin (EBIT) of 6.3 per cent, the industry’s highest (as yet announced). Consolidated net profit of $361 million for the year was reported. In addition to this positive operating performance, CMA CGM also strengthened its balance sheet through the sale of 49 per cent of Terminal Link for 400 million euros, closing of $100 million equity injection from Yildirim Group of Companies (a Turkey-based conglomerate), the signing of $150 million equity injection from FSI (Fonds Stratégique d’Investissement), and the closing of a debt restructuring agreement with its banks.
In early 2013, freight rates are higher than in early 2012. World demand is expected to vary by region, remaining weak in Europe but showing more positive trends elsewhere, especially in the United States, Russia and emerging markets (particularly in Asia, Africa and Latin America). With its extensive coverage of the global market and improved cost efficiency, CMA CGM expects an operating performance for 2013 in line with 2012, based on current market conditions.
Rodolphe Saadé, CMA CGM’s Chief Executive Officer, said: “2012 was an important year for CMA CGM, which delivered a very good performance. As we had announced, we also completed our financial restructuring and significantly strengthened our balance sheet with the sale of a new equity interest to FSI and an additional stake to Yildirim. We have therefore begun 2013 on solid foundations from which to pursue our growth.”