CMA CGM has announced plans for a $1.2bn cost savings drive as it unveiled a small loss for the fourth quarter.
It said the global plan is intended to improve its operational performance through the optimization of lines and brands, and by further streamlining its processes.
It booked a loss of $15m for the last quarter of 2018 against a profit of $92m 12 months earlier, according to figures released late on Friday.
However, the French liner giant reported a near 15% year-on-year increase in revenue, while volumes carried increased nearly 8% to 5.3mteu.
“In 2018, in a difficult environment, the group posted a sharp rise in volumes and a record revenue of nearly $23.5bn,” said chief executive Rodolphe Saade.
“Despite an increase in oil prices, our recurring EBIT margin remains considerably above the industry average.”
Looking ahead, Saade said that in 2019, despite persisting geopolitical tensions, trade perspectives are positive.
“We will continue our development with the objective of improving profitability. That is why we are launching a new $1.2bn cost reduction plan.”
For the full-year, net profit came in at $34m, down on the $697m seen in 2017, while revenue was up 11.2% year-on-year to a record of $23.5bn.
In 2018, volumes carried by CMA CGM rose by 9.3% compared to 2017 and for the first time exceeded 20-mteu carried.
On the negative side, the price of fuel rose steeply in 2018, an increase of 33%, strongly impacting CMA CGM’s core ebit.
