HOOFDDORP, Netherlands, May 9, 2012 /PRNewswire-Asia/ -- CEVA Logistics, one of the world's leading supply chain management companies, today reports results for the three months ending 31 March 2012.
Highlights
John Pattullo, CEO, said: "Even in these more difficult markets, CEVA continues to make progress. Our Ocean business performed well and we continued to make solid gains in Contract Logistics driven by excellent performance from the Automotive and Industrial sectors. The Airfreight market continues to be challenging, with CEVA's performance mirroring that of many of our competitors."
Three months ended 31 March 2012
| Key Financials (euro millions) | Actual Exchange Rates | Constant Exchange Rates | |||
| 2011 | 2012 | Change | 2012 | Change | |
| Revenue | 1,686 | 1,712 | 2% | 1,675 | (1)% |
| Adjusted EBITDA(1) | 71 | 66 | (7)% | 63 | (11)% |
(1)Adjusted EBITDA excludes the impact of specific items which are significant non-recurring items such as restructuring and certain legal expenses. Previously, this measure of performance was called EBITDA before specific items.
Revenue for the Group increased 2% to euro 1,712 million (2011: euro 1,686 million) in the quarter. Contract Logistics revenues increased 3% driven by an excellent performance from the Automotive sector, particularly in Asia and North America, as well as strong year-on-year growth in the Industrial sector. In Freight Management, where revenues were flat overall, Ocean freight performed well following significant management focus in 2011, while disappointing Airfreight performance mirrored a difficult quarter experienced by the broader airfreight market.
Group Adjusted EBITDA at euro 66 million was 7% lower than a year ago (2011: euro 71 million) partly as a result of the soft Airfreight market. A continuing focus on structural change programs and tight control of costs helped protect margins.
On 1 February, 2012, CEVA, together with its parent CEVA Investments Limited ("CIL"), successfully completed a transformational financing, eliminating over euro 500 million of CEVA indebtedness and over euro 350 million of CIL securities. After quarter end, on 2 May, 2012, CEVA refinanced its synthetic letter of credit facility due in 2013 by increasing its existing tranche B term loan due in 2016 by US$150 million and using the proceeds to pay down revolving facilities, which will be available to issue letters of credit. As a result of these transactions, CEVA has strengthened the company's balance sheet and lowered interest costs.
CEVA - Making business flow
CEVA Logistics, one of the world's leading, non-asset based supply chain companies, designs and implements industry leading solutions for large and medium-size national and multinational companies. Approximately 51,000 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 2011, the Group reported revenues of euro 6.9 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 2012 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 and Communications
Kay Hart
+1-281-618-3292
kay.hart@cevalogistics.com
