Decline in profitability with Ceva Logistics in 2012

Ceva Group reports 2012 record revenue and continues actions to improve its profitability
 
Ceva Group Plc, one of the world’s leading non-asset based supply chain management companies with around 50,000 employees, yesterday reported preliminary unaudited results for the year ending 31 December 2012. 
 
Revenue increased 4.8% in the year to EUR 7.224 billion, a record for the company. Revenue in Freight Management increased 6% to EUR 3.342 billion as lower airfreight volumes, particularly out of Asia, were offset by a solid performance in oceanfreight across all regions. The increase of 4% in the company’s contract logistics revenues reflects soft conditions across various key markets, most evident in Southern Europe, compensated by a strong performance in Asia Pacific.
 
EBITDA before specific items (Adjusted EBITDA) decreased 21.8% to EUR 251 million (2011: EUR 321 million). At constant exchange rates, EBITDA fell 28%. Freight Management adjusted EBITDA in 2012 decreased by 17.7% compared to 2011, partly due to a modal shift to oceanfreight with increased competition and soft airfreight volumes. Contract Logistics adjusted EBITDA decreased by 24.4% in 2012, as the business was affected by the continuing general economic downturn with lower volumes in various key markets, in particular Southern Europe.
 
“These are difficult times for everyone in the global logistics industry and CEVA has not been immune to those pressures,” said CEVA CEO Marvin O. Schlanger. “While our revenue line has been resilient, we have seen a marked deterioration in EBITDA in both our FM and CL businesses. This simply isn’t good enough and we have taken action to reverse this decline in profitability. We will continue to take actions necessary to establish satisfactory levels of profitability.”

Quelle: LogEastics

Portal: www.logistik-express.com