Rodolphe Saade accelerates the transformation of the CMA CGM Group

Upon the release of the 2018 financial results, Rodolphe Saade, Chairman and Chief Executive Officer of the CMA CGM Group, stated: “In 2018, in a difficult environment, the Group posted a sharp rise in volumes and a record revenue of nearly USD 23.5 billion. Despite an increase in oil prices, our recurring EBIT margin remains considerably above the industry average.

We are pursuing our strategy of innovation and digital transformation in order to continue to offer excellent service to our customers and strengthen our performance. In 2019, despite persisting geopolitical tensions, trade perspectives are positive. We will continue our development with the objective of improving profitability. That is why we are launching a new USD 1.2 billion cost reduction plan. In addition, through the friendly public tender offer we are conducting on CEVA, our ambition is to become a world leader in both transport and logistics, thereby providing a complete and efficient service offer to our customers.”

The Board of Directors of the CMA CGM Group, a worldwide leading shipping group, met under the chairmanship of Rodolphe Saade, Chairman and CEO, to approve the 2018 annual consolidated financial statements. The 2018 annual revenue grew by 11.2%, to a record level of USD 23.48 billion.

In the fourth quarter of 2018, revenue increased by 14.9% compared to the same quarter the prior year, reaching USD 6.3 billion. In 2018, volumes carried by CMA CGM rose by 9.3% compared to 2017 and for the first time exceeded 20 million TEUs (Twenty-foot Equivalent Units) carried. This increase is attributable to the commercial dynamism of most of the shipping lines operated by the Group, in particular the Transpacific, India/Oceania and Africa lines.

The price of fuel rose steeply in 2018, an increase of 33%, strongly impacting our core EBIT. Following an exceptional year in 2017, this core EBIT is USD 610 million, representing a core EBIT margin of 2.6%. In the fourth quarter, this margin reached 3.1%. Excluding exceptional items on non-consolidated subsidiaries (GSL, CEVA), recurring net income was USD 150 million. The Group’s share of consolidated net income amounted to USD 34 million for the year 2018.

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