CMA CGM loses $667 million in 2009

CMA CGM loses $667 million in 2009    French container line CMA CGM said Tuesday it sustained $667 million in operating losses in 2009 as it endured the 'deepest crisis the maritime shipping industry has ever experienced.'
   CMA CGM had operating profit, before tax and interest, of $1.2 billion in 2008. The line said revenue fell 30 percent in 2009, to $10.5 million, on a 9 percent decline in container volume, to 7.9 million TEUs.
   CMA CGM, which is not publicly traded and is not required to release its profits or losses, usually releases an income statement in spring.
   '2009 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 EBITDA in the fourth quarter after eight months of deep losses,” the line said.
   CMA CGM also said it was hopeful for a sustained recovery in 2010.
   'Markets that were hit first by recession, such as trades to United States 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 a spectacular 30 percent or so,' the carrier said.
   The line projected its first quarter operating profit to be $380 million on $3.2 billion in revenue.

Saade

   'The first 2010 quarter results, which largely exceeded expectations, demonstrate the group's ability to rebound,' said Rodolphe Saad', executive officer of the CMA CGM Group. 'Since late 2009, CMA CGM has been restructuring its balance sheet and opening its capital to new investors. We have received several offers from industrial and financial investors and are committed to finalizing negotiations before the end of summer.'
   The line relied on a cash injection from its creditors in 2009 to allow it to meet day-to-day operational costs, but said it had returned to profitability by the end of the year.
   'In a market that has returned to growth in recent months, CMA CGM intends to strengthen its industry leadership by pursuing two priority objectives: to continue adapting its fleet and to complete the necessary strengthening of its financial structure,' said Philippe Souli', chief CMA CGM executive officer. ' Eric Johnson