HOOFDDORP, The Netherlands, Nov. 10, 2011 /PRNewswire-Asia/ -- CEVA Logistics, one of the world's leading non-asset based supply chain management companies, has reported its Third Quarter, 2011 results.
Three months ended 30 September 2011
Key Financials at actual exchange rates
| Q3 2011 | Q3 2010 | Change | |
| Revenue (euro million) | 1,755 | 1,815 | (3.3%) |
| EBITDA before specific items (euro millions) (Note 1) | 86 | 86 | 0% |
| NOTE 1: EBITDA excludes the impact of specific items which are significant non-recurring items such as restructuring and integration costs, rebranding costs and certain legal expenses. | |||
Key Financials at 2010 constant exchange rates
| Q3 2011 | Q3 2010 | Change | |
| Revenue (euro millions) | 1,840 | 1,815 | 1.2% |
| EBITDA before specific items (euro millions) (Note 1) | 91 | 86 | 5.8% |
| NOTE 1: EBITDA excludes the impact of specific items which are significant non-recurring items such as restructuring and integration costs, rebranding costs and certain legal expenses. | |||
Nine months ended 30 September 2011
Key Financials at actual exchange rates
| YTD Q3 2011 | YTD Q3 2010 | Change | |
| Revenue (euro millions) | 5,154 | 5,047 | 2.1% |
| EBITDA before specific items (euro millions) (Note 1) | 238 | 203 | 17.2% |
| NOTE 1: EBITDA excludes the impact of specific items which are significant non-recurring items such as restructuring and integration costs, rebranding costs and certain legal expenses. | |||
"The actions we have taken over the past 18 months to reduce costs and improve our operational efficiency have resulted in better margins and increased EBITDA in markets that have become tougher in recent months," comments John Pattullo, CEO, CEVA Logistics. "I am pleased that our business model is proving resilient."
The Third Quarter revenue was euro1.76 billion (Q3 2010: euro1.82 billion). At constant exchange rates revenue increased 1.2%, benefiting from continued good progress in Contract Logistics (CL), which grew revenue 2.5% year-on-year. In Freight Management CEVA's air business has been impacted by declines in market volume, particularly in Transpacific airfreight lanes.
In contrast, CEVA's Ocean business, which is one of their areas of strategic focus, continues to grow. CEVA's continue to see volume increases year on year, strengthening the global market position. In Quarter Three, this has been supported by the expansion of CEVA's Less-than-Container-Load (LCL) offering, with the addition of the Hamburg to New York service, which is the first of many new LCL solutions scheduled to launch in Q4 2011. This marks a considerable strengthening of CEVA's Ocean organization and will be followed by further enhancements.
CEVA's EBITDA margin increased year-on-year from 4.7% to 4.9%. This was driven particularly by improvements in leveraging the Freight Management network and in improving CL contracts.
The Group continues to focus on strong cash management and control of net working capital. As a result, net working capital at the end of the Third Quarter decreased to euro(48) million, a euro34 million improvement, year-on-year.
In the Third Quarter new business wins totaled euro391 million (Q3 2010: euro368 million). Strongest growth performances were achieved in Freight Management and the Automotive and Energy sectors.
CEVA's comprehensive program of business improvement initiatives continues to underpin the progress. These initiatives include:
Currently floods are disrupting lives and businesses in Thailand and have impacted many of CEVA's technology and automotive customers. CEVA's team is assisting customers to move inventory and utilizing the global networks to re-engineer the supply chain to minimize risk. Today, CEVA has over 120 team members working to help customers during this difficult time. The full extent of the impact will only be known when flood waters abate.
With external markets remaining volatile, CEVA expects the uncertainty of the last few months to continue. Against this background CEVA has identified and prioritized the right actions to continue to strengthen their business model.
CEVA - Making business flow
CEVA Logistics, one of the world's leading non-asset based supply chain management companies, designs and implements industry leading solutions for large and medium-size national and multinational companies. Approximately 50,000 employees are dedicated to delivering effective and robust supply chain solutions across a variety of sectors and CEVA applies its operational expertise to provide best-in-class services across its integrated network, with a presence in over 170 countries. For the year ending 31 December 2010, the Group reported revenues of euro6.8 billion. For more information, please visit www.cevalogistics.com
SAFE HARBOR STATEMENT:
This news release may contain forward-looking statements. These statements include, but are not limited to, discussions regarding industry outlook, the Company's expectations regarding the performance of its business, its liquidity and capital resources, its guidance for 2011 and the other non-historical statements. These statements can be identified by the use of words such as "believes" "anticipates," "expects," "intends," "plans," "continues," "estimates," "predicts," "projects," "forecasts," and similar expressions. All forward-looking statements are based on management's current expectations and beliefs only as of the date of this press release and, in addition to the assumptions specifically mentioned in the above paragraphs, there are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including the effect of local and national economic, credit and capital market conditions, a downturn in the industries in which we operate (including the automotive industry and the airfreight business), risks associated with the Company's global operations, fluctuations and increases in fuel prices, the Company's substantial indebtedness, restrictions contained in its debt agreements and risks that it will be unable to compete effectively. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, is contained in the Company's annual and quarterly reports, available on the Company's website, which investors are strongly encouraged to review. Should one or more of these risks or uncertainties materialize or the consequences of such a development worsen, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. CEVA disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
For more information contact:
CEVA Group Marketing & Communications
Rebecca Salt
Tel: +44-7795-314010
Email: Rebecca.Salt@cevalogistics.com
Follow CEVA on Twitter @cevalogistics
