Ceva Reports Strong Underlying Performance
Ceva Logistics reports strong underlying performance, at constant exchange rates, in the second quarter, building on the momentum established in the second half of 2010 and quarter one 2011.
Commenting on the results, John Pattullo, CEO said: “Our performance in quarter two demonstrates a solid continuation of positive trends over the past year. Despite the industry-wide softening of freight volumes, we have increased freight management business with our global customers and we have experienced growth in our contract logistics business in all regions. Our new business performance in the period has been excellent with significant wins and contract extensions.”
At actual exchange rates, reported revenue was Euro 1,713 million (US$2,461 million) and EBITDA was Euro 81 million. Results for the second quarter were impacted by fluctuating exchange rates. Expressed at constant exchange rates, revenue and EBITDA increased 3.8 percent and 35.4 percent respectively compared to the same period last year.
Total revenue for the first half of 2011 is Euro 3,399 million, up 5.2 percent on the same period last year, and EBITDA of Euro 152 million, an increase of 29.9 percent on the first six months of 2010. At constant exchange rates revenue increased 6.8 percent with EBITDA up 34.2 percent over the same period in 2010.
The group has achieved good year-on-year improvements in new business performance, recording over Euro 1.0 billion of new wins in the first six months of 2011, particularly in China and with Ceva’s Century customers: a group of approximately 100 large global customers who represent over 50 percent of revenue.
In line with trends reported widely in the industry, the group saw some softening of the global freight market, driven mainly by lower airfreight volumes predominantly in the Americas and Asia Pacific regions.
However, Ceva was able to maintain flat year-on-year revenues, at constant exchange rates, by increasing freight management business wins by 17 percent year-on-year, with new business across all regions and particularly in the technology, automotive and energy sectors.
Revenue in the contract logistics business increased by approximately nine percent year-on-year at constant exchange rates. This growth was experienced in all regions, driven by new contract wins and the continued expansion of solutions offered to existing customers.
The group has continued to focus on strong cash management and control of net working capital. Net working capital at the end of the second quarter of 2011 was only Euro 19 million compared to Euro 57 million at the end of quarter two 2010.
