France-based CMA CGM, the world's third largest container shipping group and operator of Malta Freeport Terminals, saw its consolidated revenue decline by 30 per cent to €7.6 billion for the year ended December 31, 2009, dragged down by a sharp reduction in freight rates and volumes, the group said last week.
Overall, 7.9 million 20-foot equivalent units or containers were carried by the group during the year, a nine per cent decline which, however, outperformed the 12 per cent drop in world container traffic.
The group implemented a drastic cost reduction plan that delivered nearly $800m in savings, without sacrificing its potential for future development.
The group said last year was a year of contrast, when the upturn in volumes on most of the trades beginning in July and the group's focus on freight rates restoration and cost reduction resulted in a return to positive earnings before interest, tax, depreciation and amortisation in the fourth quarter, after eight months of deep losses.
As a result, EBITDA limited its decline to a loss of $667m over the year and the net loss from maritime shipping operations stood at $889m. The consolidated net loss for the period however, came to $1.4bn, due to the $548m in non-recurring expenses, which should give the group a very healthy start for 2010.
With its international presence through a worldwide network of agencies, especially in Asia and particularly in China, and its growing number of ports of call, CMA CGM is ideally positioned to take advantage of the recovery in global economy, the group said.
Markets that were hit first by recession, such as trades to the US or Asia-Europe and intra-Asia trades, have experienced sustained year-on-year growth in the first two months of 2010, with Asia-Europe volumes even rebounding by around 30 per cent.
For CMA CGM, a total of 2.1m TEUs were transported in the first quarter, up 22 per cent and four per cent compared with first quarter 2008. EBITDA is estimated at $380m, up $640m on first quarter 2009 and in line with first quarter 2008, while revenue was around $3.2bn, up 30 per cent year-on-year.
In 2010, CMA CGM will leverage a comprehensive range of measures to drive further growth.
Major operational measures will be taken to streamline services, develop new partnerships, and launch new lines in promising markets, in a continuously reaffirmed commitment to being the preferred, benchmark partner for its international customers.
There will be cost rationalisation, with the arrival of modern, efficient new vessels offering major economies of scale, the return of chartered vessels or renegotiation of expiring charters in a still favourable market and the reduction in ship cruising speeds.
The group is to enhance customer services by expanding the agency network, increasing the reefer fleet, and deploying e-commerce solutions more widely.
2010 will also be shaped by the delivery of the group's new head office, the CMA CGM Tower, which in the autumn will consolidate nearly 2,000 Marseille staff members currently based at seven locations.