CMA CGM sees shipping bottom out in second-quarter after demand plunge
CMA CGM expects activity in the shipping sector to bottom out during the second quarter as countries emerge from coronavirus-related lockdowns and ship operators adjust capacity, the France-based group’s finance chief said.....MORE
The world’s fourth-largest container shipping line had anticipated a 15% year-on-year drop in its volumes in the second quarter, after a 4.6% decline in the first quarter, Chief Financial Officer Michel Sirat said.
“I think that the second quarter will be the low point,” he told Reuters by telephone. “The shipping industry is much more resilient than in the past.”
The group expects an improved performance in the second quarter due to cost savings and capacity shifts that it said already helped increase its core operating margin during the previous quarter.
CMA CGM reported on Friday a first-quarter net profit of $48 million....
Here's the press release via PortNews:
2020 June 6 10:52
CMA CGM announces first quarter 2020 results
....MUCH MOREThe Board of Directors of the CMA CGM Group, a world leader in shipping and logistics, met under the chairmanship of Rodolphe Saadé, Chairman and Chief Executive Officer, to review the financial statements for the first quarter of 2020.Upon the release of 2020 first quarter results, Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, commented: “The good results of the first quarter demonstrate the strength and the resilience of the Group. During this unprecedented crisis, our customers have been able to rely on our agility, the expertise of our teams and the complementarity of our logistic and maritime offers, in order to ensure the continuity of their supply chains.
Despite the uncertainty around global economy, we anticipate an improvement during the second quarter, thanks to our operational flexibility and our discipline in terms of cost control.
The current situation reinforces our conviction that it is essential to develop better balanced economic exchanges, whilst respecting the environment. We have set Carbon neutrality by 2050 as our objective and we are ready to face future challenges.”
Highlights for the first quarter of 2020
The Group reacts and adapts to the COVID-19 health crisis
The world economy and global trade flows have been severely impacted by the COVID-19 outbreak, through factory closures in Asia, followed by lockdown measures, particularly in Europe and North America. During the first quarter, CMA CGM saw only a limited decline in volumes of 4.6%, demonstrating the resilience of the shipping industry. The Group managed to promptly adapt its deployed capacity to the current environment while protecting the supply chains of its customers. The Group leveraged its expertise to maintain the transportation of essential goods, particularly medical products, by building logistical bridges.
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