CMA CGM Profits Rise As Shipment Rush Continues
CMA CGM, one of the world’s largest container shipping groups, reported a rise in first quarter profits on Friday and said it expects strong consumer goods transportation demand to continue for the rest. of the year.
French company CMA CGM’s net profit reached $ 2.1 billion in the first quarter, from $ 48 million in the same period last year, while core EBITDA profit fell from $ 973 million to $ 3.2 billion, the group said in a statement.
Container lines such as market leader Maersk have seen a boom in demand as the COVID-19 crisis fueled the purchase of packaged goods by stranded consumers, while the chain disruption Supply during the pandemic has further fueled freight rates.
“The sustained demand for the transport of consumer goods observed since the summer of 2020 is expected to continue in the second half of 2021,” said CMA CGM.
The private group said its shipped volumes rose 10.7%, also reflecting a favorable comparison with the first quarter of last year when the start of the pandemic hit activity in China.
To meet demand and adjust to supply chain congestion, CMA CGM added more vessels during the first quarter while continuing to increase its container count, which grew by 8% over the past quarter. last year, he said.
The group said it was also relying on its growing non-sea business, including a new air cargo division.
Its logistics activity saw its operating profit increase by 25.5% to 172 million dollars and a slightly positive net profit, CMA CGM continuing the turnaround of CEVA Logistics, acquired two years ago.
Group profits in the second quarter are expected to at least reach first quarter levels, CMA CGM said.
The group also announced the early repayment of $ 1.7 billion in loans, including an outstanding loan of 1.05 billion euros ($ 1.3 billion) backed by the French state.
Its net debt fell $ 1.2 billion from the end of 2020 to $ 15.7 billion as of March 31.
($ 1 = 0.8217 euros)
(Reporting by Gus Trompiz; Editing by David Holmes)