Contract Logistics boosts Ceva’s Q1 results

Forwarding and logistics group, Ceva Logistics, which last month completed a US$1.75 billion refinancing programme, reported a 7.5 per cent improvement in its adjusted Ebitda to $43 million, driven by what it said was a strong performance within its Contract Logistics business.


Contract Logistics boosts Ceva’s Q1 results


Forwarding and logistics group, Ceva Logistics, which last month completed a US$1.75 billion refinancing programme, reported a 7.5 per cent improvement in its adjusted Ebitda to $43 million, driven by what it said was a strong performance within its Contract Logistics business.

Contract Logistics profits increased 37.8 per cent as part of Ceva’s decision to exit under-performing contracts last year, which also resulted in what it said was an “expected and planned reduction in revenue in this segment”. The strong performance in Contract Logistics was offset by weakness in the company’s Freight Management unit, where lower volumes and margin pressure out of Asia hit performance.

The company reported total group revenues of $1.86 billion for the three months ended 31 March 2014, down 8.9 per cent year-on year, as continuing weakness in air freight and ocean freight caused revenues in the company’s Freight Management business to decrease by 11.5 per cent, compared to the same period last year.