CMA CGM, the world’s third largest container shipping group, announced results for the second quarter 2013. Consolidated revenues amounted to $4.0 billion, up 5.6 per cent over the first quarter and down 2.4 per cent compared with Q2 of 2012. The year-over-year decline reflected an average drop in freight rates of 8.6 per cent, partially offset by a 6.9 per cent increase in volumes carried, to 2.9 million TEUs.
CMA CGM reported consolidated earnings before interest and taxes of $418 million, up 7 per cent year-over-year. However, excluding non-recurring items, core EBIT stood at $172 million. In addition, CMA CGM reported a consolidated net profit of $268 million (of which $249 million related to the reorganisation of the port operations, including the disposal of its 49 per cent stake in Terminal Link to China Merchants Holdings International), versus a profit of $169 million in second-quarter 2012.
CMA CGM continued to strengthen its balance sheet by reducing its net debt to $3.8 billion at June 30, a decrease of $385 million since March 31, and increasing its equity by $363 million during the quarter, to $4.8 billion, in part through the placement of $150 million of mandatory convertible bonds.
Outlook for 2013
In the third quarter, CMA CGM expects it will deliver improved operating performance as a result of on-going cost discipline and higher freight rates. The management expects to report a profit for 2013 commensurate with the company’s 2012 performance.