CMA CGM sees strong market, invests more

CMA CGM sees strong market, invests more

   CMA CGM expects the boom in the container shipping market to continue this year, supporting the companies published figures that it re-invested all of its profits last year.

   “2003 was a very satisfactory year for our group,” said Jacques Saade, CMA CGM chairman in the company’s annual report, just published. “The markets were buoyant in 2003 and we can expect them to remain so in 2004,” he added.

   The French shipping company quadrupled its net profit last year, to 202 million euros ($253 million), from 47 million euros in 2002.

   The fast-growing shipping company, which has one of the largest containership order books in the industry, invested 200 million euros ($250 million), or virtually its entire 2003 profits, on property and equipment last year, compared to 175 million euros ($214 million) in 2002.

   “The results achieved have enabled us to pursue our capital expenditure policy for more competitive vessels, port terminals and network development,” Saade commented.

   CMA CGM reported that its cash flow from operating activities soared to 272 million euros ($340 million) in 2003, up from 102 million euros the previous year. The company also raised about 100 million euros ($125 million) by issuing bonds and another 54 million euros ($68 million) by refinancing vessels last year.