CEVA continues to make progress in difficult time

16 May '12

2 min read

CEVA Logistics, one of the world's leading supply chain management companies, reports results for the three months ending 31 March 2012.

Highlights
• Revenue of €1,712 million driven by strong performance in Contract Logistics and Ocean freight
• Adjusted EBITDA of €66 million, down 7% reflecting difficult market conditions
• Balance sheet strengthened by transformational financing
• Continued focus on building market position in the months ahead
• New business wins of €504 million exceed target.

John Pattullo, CEO, 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.”

Revenue for the Group increased 2% to €1,712 million (2011: €1,686 million) in the quarter. Contract Logistics revenues increased 3% driven by an excellent performance from the automotive sector, particularly in Asia and North America, as well as strong year-on-year growth in the Industrial sector.

In Freight Management, where revenues were flat overall, Ocean freight performed well following significant management focus in 2011, while disappointing Airfreight performance mirrored a difficult quarter experienced by the broader airfreight market.

Group Adjusted EBITDA at €66 million was 7% lower than a year ago (2011: €71 million) partly as a result of the soft Airfreight market. A continuing focus on structural change programs and tight control of costs helped protect margins.

On 1 February, 2012, CEVA, together with its parent CEVA Investments Limited (“CIL”), successfully completed a transformational financing, eliminating over €500 million of CEVA indebtedness and over €350 million of CIL securities.

After quarter end, on 2 May, 2012, CEVA refinanced its synthetic letter of credit facility due in 2013 by increasing its existing tranche B term loan due in 2016 by US$150 million and using the proceeds to pay down revolving facilities, which will be available to issue letters of credit. As a result of these transactions, CEVA has strengthened the company's balance sheet and lowered interest costs.

CEVA Logistics

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