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Ceva Logistics beats expectations as sales rise

Reports revenue of €1.71bn, driven by strong performance in contract logistics and ocean freight.

The Dutch supply chain management company Ceva Logistics has reported revenues of €1.71bn for the first quarter ended 31 March 2012 – an increase of 2 per cent on actual exchange rates, compared to €1.69bn for the same period last year.

Group adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) was €66m, a year-on-year decrease of 7 per cent.

During the quarter, a continuing focus on structural change programmes and tight control of costs helped protect margins. 

Contract logistics revenues increased 3 per cent, driven by strong performance from the automotive sector, particularly in Asia and north America. In freight management, where revenues were flat overall, ocean freight performed well following significant management focus in 2011.

In February, the company, together with its parent Ceva Investments (CIL), completed a programme of refinancing, eliminating over €500m of Ceva debt and over €350m of CIL securities. As a result, the company has strengthened its balance sheet and lowered interest costs.

John Pattullo, CEO of Ceva Logistics, said:

Even in these more difficult markets, Ceva continues to make progress.  Our Ocean business performed well and we continued to make solid gains in contract logistics driven by excellent performance from the Automotive and Industrial sectors. The Airfreight market continues to be challenging, with Ceva’s performance mirroring that of many of our competitors.