AT something unfortunate is good, the current logistical chaos, which is clogging the economic recovery and costing companies so much, has brought out a French champion in all categories. With 18 billion dollars in profits (about 16.5 billion euros), the Marseille group CMA CGM, which is not listed on the stock exchange, hands down all the tenors of the CAC 40. Starting with its weight heavy TotalEnergies, yet driven by soaring oil prices and which peaks at 14 billion euros. The discreet Marseille company, founded in 1978 by the Lebanese Jacques Saadé, has earned more money than the combination of the two large banks BNP Paribas and Société Générale, yet also driven by historic results.
Weakened companies
The explanation for such a performance, unique in the annals, is essentially due to the explosion in the price of the transport of goods, in particular by container, a great specialty of the French. As a result, the volumes transported by CMA CGM only increased by 5%, while its turnover jumped by 78%. These additional billions will allow the company to invest in new capacities, boats, planes, ports, to reduce its debt by more than 9 billion and to garner cash for difficult times.
In 2009, following the financial crisis, the company came very close to bankruptcy and the memory remains vivid. This is the fate of very capital-intensive companies, like mining companies or manufacturers of electronic chips. With each shortage, we invest heavily to produce more and when the situation turns around, the overcapacities thus created increase the losses. CMA CGM has invested 10 billion dollars in 2021 and will spend 15 more in 2022. The State will not complain about seeing part of this avalanche of euros coming to fill its coffers under the profit tax.
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This explanation is of course not enough to put an end to the recurring debate on windfall profits. Especially when these are taken from the rest of the economy. Many companies are today greatly weakened by these transport costs and will try to pass them on to their customers, which leads, at the end of the chain, to inflation and a drop in purchasing power. It is this reason which had pushed the French State to block the selling price of electricity, to the chagrin of EDF.
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