CEVA reports "another good quarter"

CEVA's interim results (15 August) show that the logistics giant remains broadly optimistic for global logistics demand.

In the second quarter of 2011, CEVA saw revenues roughly flat at €1.7bn, a fall of 1.8%, whilst EBITDA (Earnings Before Interest, Tax and Depreciation and Amortisation) was up 18% at €58m, despite an increase in redundancy costs. The real impact was the weakening value of the US dollar against the euro. At constant values, CEVA states, revenue would have been up 3.8% whilst EBITDA would have jumped by 35.4%.

Freight Management (Forwarding) again has been the strongest performer in terms of profits with EBITDA hitting €30m for the quarter, up from €19m in the same period last year.

Revenue fell in freight forwarding, from €851m in Q2 2010 to €775m Q2 this year, indicating the flatness of volumes but also falling rates in both air and sea freight.

The Contract Logistics performance was more stable: the company saw revenue rise year-on-year by €45m to €938m whilst EBITDA before specific items rose from €46m to €51m. Pattullo ascribed this to very high retention rates combined with increasing business in Asia and the Middle East.

CEO John Pattullo, commented that many of his clients in the US were expressing some optimism over consumer demand over the next few quarters.