| French container line operator CMA CGM has announced that its 2014 net consolidated profits rose by 43% over the previous year to USD584 million thanks to a growth in volume and significantly reduced costs. Volumes carried rose by 8.1% year on year (y/y) to 12.2 million teu and revenues increased 5.3% to USD16.7 billion. However, but core EBIT (earnings before interest and tax) surged 28.8% to USD973 million. The group, the third biggest container carrier worldwide, said that its strong operating performance was compounded by a sharp reduction in financial costs, which were halved from USD445 million to USD222 million, helped by a USD70 million gain from changes in the Euro-Dollar exchange rate. It claimed that its cargo volume gains had largely outpaced those of the market, aided by sustained growth in the Asia-North Europe and Asia-North Africa trades. Other cargo growth factors, it said, had included a reorganisation of its African lines and inland logistical operations, the vigour of the US economy and an expansion of the business of its Asia-Pacific subsidiary ANL. Its performance had also been boosted, it added, by the opening in October 2013 of an e-business platform, which handled an “impressive” 1.34 million teu in its first full year of operation. “CMA CGM’s performance was extremely robust,” said group vice chairman Rodolphe Saadé. “By combining operational excellence, disciplined financial management and innovation, we have delivered strong growth in results with one of the industry’s highest margins and an even healthier balance sheet.” The group foresees an increase in cargo volumes of “around 5%” in the current year, based on sustained growth in the US economy and improving prospects in Europe, despite some geopolitical “uncertainty”. It also confirmed that it was finalising an order for three 20,600 teu vessels for delivery in 2017. |