HOOFDDORP, Netherlands, Aug. 16, 2011 /PRNewswire-Asia/ -- CEVA Logistics, a leading global non-asset based supply chain management company, today reports strong underlying performance, at constant exchange rates, in the second Quarter, building on the momentum established in the second half of 2010 and Quarter One 2011.
Second Quarter ended 30 June 2011
| euro millions | Q2 2011 | Q2 2010 | Change | Change at constant currency |
| Revenue | 1,713 | 1,744 | (1.8)% | 3.8% |
| EBITDA before specific items (Note 1) | 81 | 65 | 24.6% | 35.4% |
| Note 1: EBITDA excludes the impact of specific items which are significant non-recurring items such as restructuring, integration costs, and certain legal expenses. | ||||
First Half ended 30 June 2011
| euro millions | H1 2011 | H1 2010 | Change | Change at constant currency |
| Revenue | 3,399 | 3,232 | 5.2% | 6.8% |
| EBITDA before specific items (Note 1) | 152 | 117 | 29.9% | 34.2% |
| Note 1: EBITDA excludes the impact of specific items which are significant non-recurring items such as restructuring, integration costs, and certain legal expenses. | ||||
Commenting on the results, John Pattullo, CEO said: "Our performance in Quarter Two demonstrates a solid continuation of positive trends over the past year. Despite the industry-wide softening of freight volumes, we have increased Freight Management business with our global customers and we have experienced growth in our Contract Logistics business in all regions. Our new business performance in the period has been excellent with significant wins and contract extensions."
Results
At actual exchange rates, reported revenue was euro 1,713 million and EBITDA was euro 81 million. Results for the second Quarter were impacted by fluctuating exchange rates. Expressed at constant exchange rates, revenue and EBITDA increased 3.8% and 35.4% respectively compared to the same period last year.
Total revenue for the First Half of 2011 is euro 3,399 million, up 5.2% on the same period last year, and EBITDA of euro 152 million, an increase of 29.9% on the first six months of 2010. At constant exchange rates revenue increased 6.8% with EBITDA up 34.2% over the same period in 2010.
The Group has achieved good year-on-year improvements in new business performance, recording over euro 1.0 billion of new wins in the first six months of 2011, particularly in China and with CEVA's Century customers: a group of approximately 100 large global customers who represent over 50% of revenue.
In line with trends reported widely in the industry, the Group saw some softening of the global freight market, driven mainly by lower airfreight volumes predominantly in the Americas and Asia Pacific regions. However, CEVA was able to maintain flat year-on-year revenues, at constant exchange rates, by increasing Freight Management business wins by 17% year-on-year, with new business across all regions and particularly in the Technology, Automotive and Energy sectors. Revenue in the Contract Logistics business increased by approximately 9% year-on-year at constant exchange rates. This growth was experienced in all regions, driven by new contract wins and the continued expansion of solutions offered to existing customers.
The Group has continued to focus on strong cash management and control of net working capital. Net working capital at the end of the second Quarter of 2011 was only euro 19 million compared to euro 57 million at the end of Quarter Two 2010.
In summary, the Group's well defined, integrated and non-asset based business model continues to perform. Looking forward, CEVA is confident it will continue to provide competitive advantage.
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 euro 6.8 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 |