CMA CGM announces third quarter results! Call to avoid price war!

Recently, CMA CGM, the world’s third largest container shipping company, announced its third quarter financial results.

The report shows that the CMA CGM Group achieved operating income of US$11.43 billion in the third quarter, a year-on-year decrease of 42.6%; earnings before interest, taxes, depreciation, and amortization (EBITDA) was US$2.0 billion, a year-on-year decrease of 78.2%; the EBITDA profit margin was 17.5%, a year-on-year decrease of 78.2%. A decrease of 28.5%; net profit was US$388 million, a decrease of 94.5% year-on-year.

Among them, the comprehensive revenue of shipping business was US$7.6 billion, a year-on-year decrease of 51.8%, reflecting the continued normalization of freight rates. EBITDA was US$1.6 billion, a year-on-year decrease of 81.6%. The EBITDA profit margin was 21.0%, a year-on-year decrease of 34%; the average revenue per TEU was US$1,322, a year-on-year decrease of 52.3%.

There has been an increase in transportation volume, an increase of 0.9% compared with the same period in 2022, reaching 5.7 million TEU. CMA CGM explained that this was due to reduced inventories in the United States and more moderate household consumption in an inflationary environment. Volumes on the north-south and short-sea routes continued to grow, while volumes on the east-west routes further normalized.

Logistics business revenue was US$3.7 billion; EBITDA was US$348 million, a year-on-year decrease of 3%. Revenue from other businesses such as port terminals and CMA CGM was US$526 million, a year-on-year increase of 5.3%; EBITDA was US$56 million, a year-on-year decrease of 58.4%.

CMA CGM said that the stability of its logistics business was due to strong services and flexibility, while other business incomes such as port terminals and air cargo increased, but the decline in EBITDA was due to normalization of cargo volume, congestion and weak demand in the air cargo market.

Rodolphe Saadé, Chairman and CEO of CMA CGM, said: “In the third quarter, the industry continued to normalize and market conditions returned to pre-pandemic conditions. However, our results remain very solid, which proves It proves that our growth strategy in terminals and logistics is correct. When entering a new cycle, our ability to resist risks is stronger."