CMA CGM sales and earnings shrink after last record year

French shipping company CMA CGM saw sales, earnings and profits slump in the first quarter of the year compared to the same period in 2022.

Specifically, the company’s revenue reached $12.7 billion, down 30.2%, earnings before interest, taxes, depreciation and amortization (EBITDA) fell 61.3% to $3.4 billion and net income decreased from $7.2 billion in the first quarter of 2022 to $2 billion in the first three months of this year.

Although the numbers are at a significantly lower level than a year ago, CMA CGM noted that financial results for the next three quarters of the year are expected to be even weaker. “In this environment, the first quarter is expected to be the best quarter of the year as the group’s financial results continue to normalize,” the Marseille-based company confirmed in a statement.

“The trends of the fourth quarter of 2022 continued into the first quarter of 2023, with challenging market conditions in the transportation and logistics industry, while freight demand continued to slow, resulting in a rapid normalization of spot freight rates,” added CMA CGM.

Meanwhile, the world’s third-largest container carrier moved 5 million TEUs in the first quarter of the year, down 5.3% year-on-year.

The shipping company pointed out that “the trends of the second half of 2022 also prevailed in 2023, with deteriorating conditions in the transport and logistics sector”, while the macroeconomic forecasts for 2023 indicate moderate global GDP growth during the year amid inflationary pressures expect This will lead to a decrease in consumer spending in the OECD countries.

However, this could stabilize later in the year, according to CMA CGM, which said that “new capacity being deployed in the coming quarters is expected to continue to weigh on container shipping freight rates.”

Rodolphe Saadé, Chairman and CEO of CMA CGM Group, commented: “After two exceptional years, our industry has entered a period of normalization due to the slowdown in global growth, inflation and an ongoing destocking phenomenon in many parts of the world.”

He continued, “Despite this deteriorating environment, our first quarter results are extremely solid.” and to constantly expand and strengthen logistics solutions for our customers.”

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