France’s CMA CGM announced a net profit of US$371 million in the third quarter of the year, which it attributed to a highly successful cost-cutting program and higher cargo rates.
Revenue amounted to $4.2 billion for the period, up 9 percent compared to the third quarter of 2011. Volumes carried stood at 2.7 million 20-foot-equivalent units versus 2.6 million TEUs in the prior-year period.
“The group continued to implement its action plan, which generated $550 million in savings over the first nine months of the year, well ahead of its objectives. In addition, freight rates increased on every trade during the period, further improving its profitability,” the Marseilles-based box ship said in a statement.
The company, the world’s third largest container shipping group, added that it achieved earnings before interest, taxes, depreciation, and amortization of $617 million for the quarter. After depreciation and amortization, the operating margin stood at 13 percent, which it described as “the best performance announced in the industry.”
Net profit for the first nine months of the year came to $310 million. The company said it expects to end the year with “a substantial profit.”
Photo: jdnx
