© Reuters. FILE PHOTO: Fisherman Travels By Boat In Front Of CMA CGM Container Ship Passing Through Suez Canal In Ismailia, Egypt, July 7, 2021. REUTERS / Amr Abdallah Dalsh
PARIS (Reuters) – Freight forwarding group CMA CGM on Friday reported an increase in earnings in the third quarter and said it expected even better results by the end of the year as intense demand maintained high freight prices and increased container capacity.
CMA CGM, headquartered in France, one of the world’s largest container lines, said net profit rose to $ 5.6 billion in the third quarter from $ 567 million in the same period last year, while core EBITDA earnings rose to 7.1 billion dollars with 1.7 billion dollars.
The economic recovery following the costs of the coronavirus pandemic disrupted supply chains and exacerbated logistical problems such as outdated infrastructure and a shortage of drivers.
Maersk, the world’s largest container line, said this month that delays in ports would continue next year.
“The pressure on the effective shipping capacity of consumer goods, which has been observed since the summer of 2020, is expected to last at least until the first half of 2022,” CMA told CGM.
“The current context is therefore likely to allow the Group to achieve an even stronger financial performance during the fourth quarter.”
The group, which is privately controlled by the Saade family, has increased its shipping capacity by almost 6% in the year to September 2021, the statement said.
The company has also expanded like Maersk into non-maritime transport, using the acquisition of CEVA Logistics two years ago and the creation of an air cargo division this year.
As part of its cargo transport campaign, CMA CGM on Friday with Airbus announced an order for four A350F cargo planes.
Rising earnings have helped CMA CGM accelerate investment this year, including a planned purchase of a Los Angeles port terminal for about $ 2 billion.
The group also said its net debt had fallen sharply, to $ 11.9 billion since Sept. 30, down $ 4.9 billion from the end of last year.
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