CMA CGM, the world’s third largest container shipping group, reported a net profit of US$178 million for the second quarter of 2012 against $74 million for the same period a year ago as a result of higher freight rates.
The company, which had reported a net loss of $248 million year-over-year for first-quarter 2012, said it expects to realize a profit for the whole of this year.
In an official statement, the Marseilles-based box ship said revenue went up by 12 percent to $4.149 billion for the second quarter of 2012 compared to second-quarter 2011, “reflecting a sharp acceleration in business growth.”
France’s largest carrier said it carried a total of 2.7 million TEUs during the period, up 8 percent from the comparable period the previous year.
Earnings before interest, taxes, depreciation, and amortization for the three months ended June 30 was $460 million, resulting in an EBITDA margin of 11 percent, “the industry’s best performance,” CMA CGM said.
“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,” it added.
In addition, the group said it continued to implement an action plan that has delivered $294 million in savings over the first six months of 2012, well ahead of the initial $400 million target for full-year cost savings.
“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,” the statement said.
Photo: kenteegardin
