French shipping major CMA CGM ended the first quarter of 2019 in loss as it took a new step in the transformation to adapt to the changing market.
The company’s net loss for the period reached USD 43 million, compared to a net loss of USD 77 million reported in the same quarter a year earlier.
However, first quarter revenue was up by nearly 37% year-on-year, to USD 7.41 billion from USD 5.41 billion reported in the previous year. Coming on top of the group’s 5.5% organic growth, the impact of integrating CEVA amounted to USD 1.7 billion.
Volumes transported by CMA CGM rose by 4.4% compared to the first quarter of 2018 as the beginning of 2019 was marked by strong development in intra-regional routes. Revenue per container increased slightly, particularly on the routes serving the United States and Africa.
The CMA CGM Group has undertaken a number of strategic moves in recent months, including the acquisition of CEVA Logistics and regional short-sea players such as Mercosul and Containerships and the modernization of its fleet.....MORE
To adapt to the changing market, the group is now taking a new step in its transformation by consolidating its development and implementing an ambitious cost reduction program.
In continuation of the “Agility” plan to improve overall operational performance, which was implemented in July 2016, CMA CGM revealed in March 2019 a strengthened plan with a savings target of USD 1.2 billion....
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