CEVA Logistics reports profitable half-year despite struggles
Despite an onslaught of challenges, including lower airfreight volumes in the Asia-Pacific and Americas regions, CEVA Logistics posted considerable growth in the first half of 2011. In addition to a 30-percent, year-over-year increase in EBITDA — surging to €152 million — the global logistics provider also introduced €1 billion in new business during this period.
Not all of CEVA’s numbers were promising, however. Year-over-year revenue was down a modest 1.8 percent in the second quarter of 2011, and net working capital struggled during this period as well. The latter category experienced much more pronounced losses, however, falling €38 million from 2010.
Despite these statistics, CEVA Logistics CEO John Pattullo points to the successes in both the second quarter and first half of 2011. The second quarter, in particular, showed the core strength of CEVA’s service offerings, he said.
“Our performance in quarter two demonstrates a solid continuation of positive trends over the past year,” Patullo said in a statement. “Despite the industry-wide softening of freight volumes, we have increased freight management business with our global customers and 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.”
A majority of CEVA’s new contracts are based in China, with the logistics provider targeting the technology, automotive and energy sectors. And CEVA officials expect these agreements to spur business even more in the second half of the year.