CEVA Holdings LLC one of the world’s leading non‐asset based supply chain management companies, reported results for the third quarter of the year.
“I am pleased to announce another good quarter for CEVA” says Xavier Urbain, CEO of CEVA. “We have been able to offset ongoing market volatility in air and ocean freight. Our procurement and pricing strategy has enabled us to protect yields sequentially. Contract logistics continues to grow and delivers improved results through focused action on contracts. CEVA is on track to deliver a stronger result in 2017. The transformation we have embarked on is positioning CEVA as a strong player for the future.”
In Q3, Freight Management maintained volume growth for its air product at 11.8% versus prior year. Market volatility in airfreight rates continues, notably on routes ex-Asia. Volume planning and pricing measures have enabled us to mitigate that pressure to a large extent.
Our excellence program delivered cost and quality improvements, supporting stable yields.
Freight management EBITDA in Q3 was $26 million, down $1 million year-over-year as a result of margins pressure from rates.
Revenues are up 1.7% in Q3 in constant currency despite less trading days in the quarter and the termination of certain contracts. We had several new business wins notably in the consumer & retail, e-commerce and industrial sectors.
Contract Logistics EBITDA was $43 million in Q3, up $5 million YoY in constant currency, a strengthening of the margin by 50 bps. This positive result is driven by the focus on productivity improvement on key contracts through the Excellence Program and the portfolio review.