France’s CMA CGM sees earnings ebbing as transport growth fades By Reuters

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© Reuters. FILE PHOTO: The emblem of CMA-CGM transport firm is pictured on a container in Montoir-de-Bretagne close to Saint-Nazaire, France, March 4, 2022. REUTERS/Stephane Mahe

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PARIS (Reuters) -CMA CGM mentioned it expects a pullback in transport markets to speed up within the fourth quarter attributable to excessive vitality costs and flagging client spending, and this can cut back its profitability following an earnings surge up to now yr.

French-based CMA CGM, one of many world’s largest container traces, reported on Friday a web revenue of $7.0 billion for the third quarter, up from $5.6 billion within the year-earlier interval.

Nevertheless, the web revenue was down from $7.6 billion within the earlier quarter, whereas core earnings additionally fell barely from the second quarter, with CMA CGM noting an easing in spot freight charges as transport demand softened.

Echoing its friends, CMA CGM mentioned in a quarterly assertion that elevated vitality costs linked to the conflict in Ukraine and weakening client demand had been dampening a transport market that had change into overheated following the COVID-19 pandemic.

CMA CGM, based mostly in Marseille and privately managed by the founding Saade household, mentioned its vitality prices had elevated by $822 million year-on-year within the third quarter.

Its hovering earnings over the previous yr drew calls from the French authorities for CMA CGM to assist cushion inflation pressures. CMA CGM responded with transport reductions for cargoes to France.

The group has used its large earnings to assist an funding spree, together with acquisitions in logistics and the shopping for of a stake in Air France-KLM.

The corporate has additionally slashed its debt pile, with its web debt falling by $5.3 billion throughout the third quarter to $78 million by Sept. 30, it mentioned.

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