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CEVA reports Q1 decline

CEVA logistics truck
CEVA logistics truck

By: Jerrel Yun, Singapore
Published: May 19, 2009
Global - CEVA Logistics said Q1 revenue slipped 13.3% on a continuing decline in demand for freight forwarding and automotive contract logistics.

The Netherlands-based logistics provider said revenue was badly hit in the first three months of this year, with a 13.3% year-on-year decline to €1.3 billion (US$1.75 million).

The sub-standard results led to a severe fall in EBITDA (earnings before interest, taxation, depreciation and amortisation), from US$97.2 million in Q108 to US$40.5 million in Q109, causing margins to half from 4.8% to 2.3%.

CEVA said its profits and sales decline is in line with the general slump in world trade.

The company has, however, prepared a pipeline of new business driven by cross-selling, which had delivered a US$467 million increase in sales since purchasing EGL (Eagle Global Logistics), CEVA said.

It plans to increase its market share driven by some signs of recovery in automotive production and air freight volumes in March, while its cash position remains stable despite cash generation from operations having declined by US$13.5 million.

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