CMA CGM profit rises in 2005

FRENCH shipping group CMA CGM recorded a 12.6 per cent increase in profit last year despite additional costs from the expansion of its fleet and the inauguration of new services.

According to a report in the Tradewinds newspaper, the Marseilles-headquartered container shipping company made a net profit of EUR467 million (US$573 million) in the year ending December 31, 2005, an increase of EUR52 million over the EUR415 million achieved in 2004.

Driven by a 23.6 per cent increase in freight revenues, operating revenue was EUR4.15 billion, compared with EUR3.36 billion posted the previous year. Freight rates rose four per cent on average to US$1,268 per TEU from US$1,212 per TEU in 2004. However, the increase in revenues was due mainly to the additional capacity on eight of the company's routes in 2005. The positive result also reflected the full-year impact of the creation of six services lines in 2004.

The volume of cargo transported by CMA CGM last year was 4.7 million TEU, a 20 per cent increase from the 3.9 million TEU carried in 2004.

During the year, costs went up 29 per cent to EUR1.03 billion, mainly the result of more expensive container transport, rentals, maintenance and repair. Other factors affecting costs were an increase in the purchase of spare parts, lubricants and paints to furnish the company's expanding fleet.

The company was also hit by a tax bill of EUR31.6 million, a 33 per cent rise from the EUR23.8 it had to pay the previous year.