CMA CGM announced first quarter results

The Board of Directors of France's CMA CGM, one of the world's largest container shipping companies, met under the chairmanship of Jacques R. Saadé, Chairman and Chief Executive Officer, to review the financial statements for the first quarter of 2015.

Volumes rose 10.5% in the period to 3.1 million TEU. This rise chiefly results from the increase in volumes on the East-West lines, particularly to and from the US, where volumes enjoyed sustained growth, and also from the launch of the Ocean Three Alliance.

The Group continued to actively optimise its lines, opening five new routes in the US and extending its agency network up to 655 agencies in over 160 countries.

Consolidated revenue for CMA CGM was up 1.8% to $4.013 billion.

The Group reaped the rewards of its operating efficiency and cost discipline as well as the sharp drop in bunker prices (bunker costs per TEU down 36.5%). Core EBIT margin leapt to $406 million, representing 10.1% of revenue, once again significantly above peers’ average.

Consolidated net profit was up sharply on first-quarter 2014, at $406 million.

CMA CGM continued to roll out its balanced financial strategy over the first quarter, aimed at strengthening its financial flexibility while pursuing controlled expansion to deliver further growth. Adjusted net debt fell by 10.3%, chiefly due to the favourable impact of the $/€ exchange rate and to the increase in the Group's cash available. Consolidated adjusted net debt now represents less than half consolidated adjusted equity.

This balanced financial strategy was recently recognized by Moody's, which raised the Group's credit rating to B1 with a stable outlook. 

On 31 March 2015, CMA CGM took delivery of < CMA CGM Kerguelen>, its first 17,722 TEU vessel designed to be used on Asia-Europe lines. Another five similar-sized vessels will also be delivered this year, along with 6 vessels with a capacity of 9,400 TEU and three vessels with a capacity of 2,100 TEU.

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