CMA CGM Group, the parent of French container carrier CMA CGM, said it had adjusted earnings before interest, taxes, depreciation and amortization of $954 million in the second quarter of 2019 compared to $214.6 million in the same period last year. (This is before gains or losses on disposal of property and equipment and subsidiaries.)
It predicted a better financial result in the second half of the year than in the first.
CMA CGM, which completed its tender offer for CEVA Logistics in the second quarter, said $464 million of its second-quarter EBITDA resulted from the acquisition of CEVA and implementation of the IFRS 16 accounting rule. Eliminating the effect of CEVA and IFRS, it said adjusted EBITDA was still up 60.1%.
The company had a $109 million loss in the second quarter compared to a $22.7 million consolidated net profit in the same 2018 period.
Revenue was $7.7 billion in the second quarter, up 35% from the $5.7 billion reported in the same period last year.
CMA CGM said, “The activity of the Group’s maritime division has particularly benefited from the dynamisms of its intraregional lines and has posted a growth in volumes above global market growth.”
CMA CGM said its shipping business had revenue of $6 billion in the second quarter, 4.6% more than the $5.7 billion recorded in the second quarter of 2018. Volumes amounted to 5.52 million TEUs in the second quarter of 2019, 6.3% more than in the second quarter of 2018. Adjusted EBITDA for the shipping business amounted to $343.6 million, 60.1% more than the $214.6 million recorded in the second quarter of 2018.
The company said while it is operating during a time of geopolitical uncertainty, it will “focus its efforts on operational efficiency, cost control and the rationalization of its industrial activities and brands.”
CMA CGM said its volume growth is better than the market average and reflects strong growth by its intra-regional lines including CNC, a specialist in the Intra-Asia trade; Mercosul, a leader in cabotage and door-to-door services in Brazil; ANL, an expert for Australia and Oceania; and Containerships, a specialist in the intra-Europe trade.
CMA CGM added 19 ships to its fleet. The 528 vessels operated in the second quarter of 2019 had a capacity of 2.76 million TEUs, 5% more than in the second quarter of 2018.
“Positive momentum generated by the acquisition of CEVA Logistics will gradually enable the Group to benefit from a less volatile and more diversified environment than the maritime sector,” it predicted.
“Thanks to all the measures put in place, the Group is confident for the second half of 2019, which should be better than the first one. The CMA CGM Group will continue to improve its financial performance and adapt its commercial offering in order to provide its customers end-to-end offers.”