CMA CGM releases First Quarter 2020 Results

• Solid operating performance and resilient business activity
  
• Operating margin increase to 13.5% and positive net result of USD 48 million.
  
• Significant strengthening of liquidity in line with defined targets.
  
• Effective cost control and prompt adaptation of deployed capacity in response of evolving market conditions.
  
• The CMA CGM Group sets an objective to become carbon neutral by 2050.

The Board of Directors of the CMA CGM Group, a world leader in shipping and logistics, met under the chairmanship of Rodolphe Saadé, Chairman and Chief Executive Officer, to review the financial statements for the first quarter of 2020.

Upon the release of 2020 first quarter results, Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, commented: “The good results of the first quarter demonstrate the strength and the resilience of the Group. During this unprecedented crisis, our customers have been able to rely on our agility, the expertise of our teams and the complementarity of our logistic and maritime offers, in order to ensure the continuity of their supply chains.

Despite the uncertainty around global economy, we anticipate an improvement during the second quarter, thanks to our operational flexibility and our discipline in terms of cost control.

The current situation reinforces our conviction that it is essential to develop better balanced economic exchanges, whilst respecting the environment. We have set Carbon neutrality by 2050 as our objective and we are ready to face future challenges.”

Highlights for the first quarter of 2020

The Group reacts and adapts to the COVID-19 health crisis

The world economy and global trade flows have been severely impacted by the COVID-19 outbreak, through factory closures in Asia, followed by lockdown measures, particularly in Europe and North America. During the first quarter, CMA CGM saw only a limited decline in volumes of 4.6%, demonstrating the resilience of the shipping industry. The Group managed to promptly adapt its deployed capacity to the current environment while protecting the supply chains of its customers. The Group leveraged its expertise to maintain the transportation of essential goods, particularly medical products, by building logistical bridges.

CEVA Logistics: the turnaround and transformation plan continues to make progress

A new phase in CEVA Logistics’ plan to return to profitability has been launched. The execution of this plan includes several actions, including revitalising business development, reducing costs, and modernising industrial assets and systems. The COVID-19 crisis has confirmed the relevance of our strategy consisting in offering complementary maritime transport and logistics services, namely CEVA Logistics’ commercial offering, particularly in terms of air freight and warehousing.

Disposal of a first portfolio of eight port terminals to Terminal Link for a cash amount of USD 815 million

The sale of two additional terminals covered by the agreement between CMA CGM and China Merchants Port (CMP) should be closed by this Summer.

The Group is doing its part to improve air quality, in full compliance with the International Maritime Organization Low Sulphur Regulation (IMO 2020)

As of the 1st of January, 2020, the Group implemented a wide range of measures that were financed by the full application of dedicated tariff adjustments (Bunker Adjustment Factors).