CMA CGM POSTS LOWER PROFIT FOR FIRST HALF

CMA CGM POSTS LOWER PROFIT FOR FIRST HALF

   CMA CGM, the French container shipping line, reported a net income of 2 million euro (about $2 million) for the first half of the year, despite a fall in freight rates.

   The near-breakeven result of the French company    in the first six months of this year compares with recently-announced losses at APL Liner, P&O Nedlloyd Container Line and Evergreen Marine Corp., and with a small profit at CP Ships.

   CMA CGM’s traffic volume jumped by 34 percent, to 1.15 million TEUs in the first half of the year. Because of lower freight prices, total revenue rose by only 7 percent over the same period, to 1.13 billion euro ($1.12 billion), from 1.06 billion euro in the first half of 2001.

   The company’s operating profit fell by 49 percent, to 16 million euro (about $16 million), from 32 million euro. Net income dropped by 94 percent, to 2 million ($2 million), from 36 million euro in the first half of 2001.

   “In the first six months of 2002, CMA CGM pursued its investment program and strengthened the competitiveness and reliability of its maritime transport and liner services,” the company said,

   CMA CGM is diversifying into in sectors both upstream and downstream from its maritime transport business. In June, the company and its partners won bids to operate new terminals to be established in Le Havre and in Marseilles.

   The carrier said that the trend of freight rates is now upwards.

   It predicted that its full-year net income for 2002 will be higher than in 2001, when it made a net income of 28 million euro ($25 million).