In the second quarter, consolidated revenue amounted to $4.0 billion, up 5.6% over the first quarter and down 2.4% year-on-year. The year-on-year decline reflected a 6.9% increase in volumes carried, to 2.9 million TEUs, even as the Group’s average freight rate shrank 8.6% over the period, amid an even sharper contraction in the industry as a whole.
During the period, CMA CGM reported:
• $418 million in consolidated EBIT, up 7% year-on-year. Excluding non-recurring items (of which the Terminal Link divestment), core EBIT stood at $172 million.
• A 4.2% EBIT margin before non-recurring items, one of the highest in the industry.
• $268 million in consolidated net profit (of which $249 million related to the reorganisation of the port operations, including the disposal of Terminal Link), versus a profit of $169 million in second-quarter 2012.
CMA CGM also continued to strengthen its balance sheet by:
• Sharply reducing net debt to $3.8 billion at 30 June, a decrease of $385 million since 31 March.
• Substantially increasing its equity to $4.8 billion, by $363 million over the quarter.
Significant events during the quarter
CMA CGM closed the purchase of $150 million in mandatory convertible bonds by Fonds Stratégique d’Investissement (FSI) and completed the sale of a 49% stake in Terminal Link to China Merchants Holdings International.
In addition, CMA CGM, Maersk Line and MSC Mediterranean Shipping Company S.A. decided to create the P3 Network, an operational alliance on East-West trades designed to optimise fleet use on these lines. The agreement, which remains subject to the approval of various competition authorities, is expected to come into effect in Q2 2014.
Outlook for 2013
In the third quarter, CMA CGM will benefit of an improved operating performance resulting from on-going cost discipline and higher freight rates.
In today’s still volatile operating environment, the Group confirms that, thanks to its strong fundamentals and strategy, it expects to report for 2013 a profit commensurate with its 2012 performance.