CMA CGM Begins $1.2B Cost-Cutting Program
Container shipping goliath CMA CGM announced the implementation of a global plan for 2019 to improve its operational performance with a cost savings objective of $1.2 billion through the optimization of lines and brands, and by further streamlining its processes. This after the company announced that 2018 annual revenue grew 11.2% to a record level of $23.48 billion.
Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, stated: "In 2019, despite persisting geopolitical tensions, trade perspectives are positive. We will continue our development with the objective of improving profitability. That is why we are launching a new $1.2 billion cost reduction plan."
"In addition, through the friendly public tender offer we are conducting on CEVA, our ambition is to become a world leader in both transport and logistics, thereby providing a complete and efficient service offer to our customers," he added.
The CEVA - CMA CGM new strategic plan includes cost reduction for CMA CGM and CEVA through pooled operations and cost synergies, such as cooperation for purchases and the implementation of shared services, said a press release from the international freight forwarding giant.
The company expects that this move represents a major transformation that will make the CMA CGM Group a world leader in both transport and logistics, with 100,000 employees and more than USD 30 billion in revenue.
Incidentally, the Group posted a sharp rise in volumes and a record revenue of nearly $23.5 billion for 2018.
The 2018 annual revenue grew by 11.2%, to a record level of $23.48 billion. In the fourth quarter of 2018, revenue increased by 14.9% compared to the same quarter the prior year, reaching $6.3 billion.