CMA CGM has reported its first profit in three quarters on the back of its cost cutting effort and increased volumes.
The French liner giant made $2.2m in the second quarter, marking a turnaround from the $43m loss seen in the preceding quarter.
Second quarter revenue was up 4.6% compared to the second quarter of 2018 and reached $6bn for the group’s shipping activities
Volumes transported by CMA CGM increased by 6.3% compared to the year-ago period and by 6.8% compared to the first quarter of 2019.
“This positive trend, which is above market, is driven by the strong growth of intra-regional lines and the US lines, which remain particularly dynamic,” CMA CGM said.
The company said its cost reduction plan had allowed it to reduce operational expenses by $51 per TEU in the second quarter.
“This mainly comes from initiatives to rationalize certain trades, the efforts to always improve operational efficiency, lower logistics costs and the reduction of the group’s ships consumption,” CMA CGM said.
Looking ahead, CMA CGM said it was confident the second half of 2019 would be better than the first in financial terms.
“In a context of geopolitical uncertainty, the CMA CGM Group continues to focus its efforts on operational efficiency, cost control and the rationalization of its industrial activities and brands,” it said.
“In addition, the positive momentum generated by the acquisition of CEVA Logistics will gradually enable the group to benefit from a less volatile and more diversified environment than the maritime sector.”
