CEVA struggles towards profitability

CEVA is recovering from the effects of its recapitalisation with its 2013 results showing revenue and EBITDA both down on 2012 and posting a full year loss of US$60 million.


CEVA struggles towards profitability


CEVA is recovering from the effects of its recapitalisation with its 2013 results showing revenue and EBITDA both down on 2012 and posting a full year loss of US$60 million. CEVA said it suffered from the depressed market for transpacific air freight and the uncertainty over the future of the company during the recapitalisation process in the middle of the year. Both these factors had a severe effect on the ability to attract business.

Freight Management saw revenue decline by from $4.3 billion in 2012 to $3.8 billion while ‘adjusted’ EBITDA (earnings Before Interest, Tax, Depreciation, Amortisation) dove from $130 million in 2012 to $42 million in 2013. For the 4th quarter alone, however things were slightly better with EBITDA down by just over a half at $16 million.

Contract logistics on the other hand, while seeing a slight dip in revenue yearon- year at $4.7 billion, adjusted EBITDA increased by 24 per cent to $235 million. Much of this appears to be the product of aggressive rationalisation of contracts combined with high demand in areas such as US automotive.