CMA CGM-Profits fall
2022.11.25 13:13
CMA CGM-Profits fall
Budrigannews.com – After a year of record earnings, CMA CGM said it expects a pullback in shipping markets to accelerate in the fourth quarter as a result of rising energy costs and falling consumer spending.
One of the largest container lines in the world, CMA CGM, based in France, reported a net profit of $7.0 billion for the third quarter, up from $5.6 billion the year before.
However, the net profit decreased from $7.6 billion in the previous quarter, and core earnings also decreased slightly from the second quarter. CMA CGM attributed the decrease in core earnings to a decrease in spot freight rates due to a decrease in shipping demand.
In a quarterly statement, CMA CGM stated, in agreement with its peers, that a shipping market that had become overheated following the COVID-19 pandemic was being dampened by rising energy costs caused by the war in Ukraine and decreasing consumer demand.
In the third quarter, CMA CGM, which has its headquarters in Marseille and is privately controlled by the founding Saade family, reported that its energy costs had increased by $822 million year-over-year.
The French government demanded that CMA CGM assist in mitigating inflationary pressures due to its skyrocketing profits over the past year. CMA CGM responded by offering discounts on shipping for France-bound cargoes.
The company has supported an investment spree with its substantial profits, including the purchase of a stake in Air France-KLM and logistics acquisitions.
The organization has likewise cut its obligation heap, with its net obligation falling by $5.3 billion during the second from last quarter to $78 million by Sept. 30, it said.
