The French ocean carrier transported 3 percent more containers, but saw the average freight rate tumble 17.6 percent when compared to the first quarter of 2015.
By Chris Dupin |Friday, May 20, 2016
Ocean carrier CMA CGM reported a loss of $100 million in the first quarter of 2016 compared to a profit of $406 million in the first quarter of 2015. Core earnings before interest, taxes, disposals and impairment charges totaled $3 million in the first quarter of this year compared to $406 million in the first quarter of 2015.
The loss came as the third largest container liner company saw revenues for the quarter tumble 15.3 percent year-over-year to $3.4 billion.
Revenues fell even though the company carried 3.2 million containers in the first quarter, 2.9 percent more than the 3.1 million containers if carried in the first quarter of 2015, due to average revenue per TEU falling 17.6 percent.
Shipping group CMA CGM targets $1 billion savings in tough market
PARIS (Reuters) – France’s CMA CGM, the world’s third-largest container shipping firm, reported on Friday a first-quarter net loss and said it aimed to cut costs by nearly $1 billion (0.68 billion pounds) to maintain positive operating margins in a market downturn.
The company posted a net loss of $100 million, compared with a $406 million net profit in the same period of last year, it said in a statement.
Core operating profit fell to $3 million, also from $406 million a year ago, while sales declined by 15.3 percent to $3.4 billion.
Increased volumes, which rose 2.9 percent, and an unspecified fall in unit costs partly offset weak freight rates and helped it achieve a positive operating margin of 0.1 percent.
(Reporting by Gus Trompiz)