France’s largest carrier, CMA CGM, reported a net loss of US$248 million year-over-year for first-quarter 2012, but claimed the figure represented one of the best financial performances in the industry for the period.
The company also had earnings before interest, taxes, depreciation, and amortization of negative $31 million.
But company-carried volume grew by 13.4 percent to 2.6 million 20-foot equivalent units, while revenue increased by 2.6 percent to $3.6 billion for the first three months of 2012 compared to the same period last year.
The Marseilles-based box ship said the first quarter was particularly difficult for the container shipping industry, which struggled against persistent overcapacity, new lows in freight rates, and sharp increases in oil prices.
Despite the loss, the liner, the third largest in the world, is optimistic about 2012. It expects to return to the black this year as its performance “has improved sharply since the beginning of the second quarter,” a company statement said.
After the first quarter, the market has significantly rebounded with several successful freight rate increases, while oil prices have decreased significantly, it added.
The group said it reached breakeven in operating profit in April and would pursue its cost reduction plan, which had already delivered $96.5 million in savings over the quarter and would result in $400 million in total savings by year-end.
Photo: PhillipC
