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Ocean Carriers

CMA CGM Shows Strong Growth in 2015

CMA CGM Shows Strong Growth in 2015
Danny Gill

CMA CGM has once again showed strong growth throughout 2015, even in an increasingly difficult environment, with highlights including:

  • Strong 6.3% volume growth, largely outpacing the market
  • EBIT margin and net profit virtually stable, reflecting a tight rein on operating costs in a volatile market
  • 2016: Neptune Orient Lines (NOL) acquisition project should help to boost CMA CGM’s position in its industry

Commenting on the results, Rodolphe Saadé, CMA CGM Group Vice-Chairman said:

“Our operating performance once again illustrates the strength of our business model and our capacity to adapt. In a challenging market environment, we continued to roll out our strategy while adjusting our cost and financing structure to best effect.

The beginning of 2016 was tough and marked by freight rates under pressure. We are therefore strengthening our continuous efforts to adapt and optimize our maritime services as well as our cost reduction program.

At the same time, we entered a decisive new stage in our development with the project to acquire NOL. The project is progressing in line with expectations. Combined with our intrinsic capacity to deliver solid operating results, this project will make us more competitive going forward.”

“Our operating performance once again illustrates the strength of our business model and our capacity to adapt. In a challenging market environment, we continued to roll out our strategy while adjusting our cost and financing structure to best effect.”

Financial and Operating Highlights

  • Volumes carried in 2015 rose by 6.3% year-on-year, to 13.0 million TEUs, significantly outperforming the market.

In particular, volume growth was led by:

  • The new Ocean Three Alliance in place since January 2015 with China Shipping and UASC.
  • CMA CGM’s expansion in the United States, where the Group had anticipated the market’s growth.
  • Consolidated revenue was down 6.4% year-on-year to $15.7 billion. Volume growth helped stem this decline in revenue despite the sharp fall in freight rates.
  • Core EBIT came in at $911 million.
  • The resulting core EBIT margin remained stable, at 5.8% for the year, and was once again one of the highest in the industry. Unit costs fell as a result of the slump in oil prices and the Group’s tight rein on other costs.
  • Consolidated net profit Group share was therefore also virtually stable, at $567 million. As in 2014, it benefited from a positive exchange rate impact.

2015 Highlights

  • Operational launch of the Ocean Three Alliance on Transpacific and Asia-Europe routes.
  • Delivery of 18 ships, including six 18,000-TEU vessels deployed on major shipping routes.
  • Extended agency network, with new sales offices opened in 13 countries.
  • Development of new e-commerce and mobile applications to enhance the quality of its service offer.
  • Continued development of Traxens technology with a view to transforming containers into smart objects, thereby enabling better coordination of the container supply chain.

 

 

 

Ocean Carriers
Danny Gill

Danny is currently a Contributing Writer for Airfreight Logistics and Logistics Manager (LM) and is quite the foodie. He’s always on the hunt for new and exciting dishes to sample, and is never one to back down from a spicy challenge. His travels have taken him around the world, and he’s been able to experience many different cultures (and food).

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