CEVA Group plc, Announces Quarter Two and Half Year, 2010 Results

2010-08-16 13:02 1834

HOOFDDORP, The Netherlands, Aug. 16 /PRNewswire-Asia/--

  • First half revenue and EBITDA increased by 22% and 18% respectively
  • Quarter Two revenue increased 30%
  • New business wins delivered revenues of €451 million in the second quarter

CEVA Logistics, a leading global supply chain management company, has today reported revenue increases for its Quarter Two and Half Year 2010 financial results. 

"I am pleased to end the first half of the year with results which show continued growth of our business and progress in implementing our strategy.  Second quarter results were impacted by FM margin compression and one-time contract logistics start up costs," said John Pattullo, CEO, CEVA.

Six months ended 30 June 2010

Key Financials at actual exchange rates

€ millions H1 2010 H1 2009 Change
Revenue 3,232 2,641 22%
EBITDA before specific items1 117 99 18%


Key Financials at 2009 constant exchange rates

€ millions H1 2010 H1 2009 Change
Revenue 3,061 2,641 16%
EBITDA before specific items1 109 99 10%

Three months ended 30 June 2010

Key Financials at actual exchange rates

€ millions Q2 2010 Q2 2009 Change
Revenue 1,744 1,339 30%
EBITDA before specific items1 65 69 (6)%


Key Financials at 2009 constant exchange rates

€ millions Q2 2010 Q2 2009 Change
Revenue 1,608 1,339 20%
EBITDA before specific items1 58 69 (16)%


1EBITDA excludes the impact of specific items which are significant non-recurring items such as restructuring and integration costs, rebranding, costs and certain legal expenses.

Second quarter revenue growth year on year of 30% was driven by strong freight volumes, particularly in the Americas and Asia Pacific.  In Contract Logistics year on year growth was achieved through increased volumes in the strategically important automotive, consumer & retail and technology sectors.

EBITDA declined 6% year on year in the second quarter.  Freight Management EBITDA before specific items decreased by €2 million, largely a result of margin compression caused by rapidly rising transport costs which offset higher volumes. Our actions in the marketplace to recover these costs resulted in sequential improvement within the Quarter.   Contract Logistics EBITDA before specific items for the three months ended June 2010 declined by €3 million. This was partly impacted by one-time costs incurred in establishing new operations.

In the second quarter of 2010 our new business wins continued well with €451 million of additional revenue, mainly driven by growth in consumer & retail and energy sectors and continued improvement in the automotive market.  New contract wins include Janssen Pharmaceutica in Belgium, AKI in Spain and Triumph Motorcycles in the UK.  We continue to focus strategically on building our contract logistics presence in the technology and consumer market sectors with increases of 23% and 18% respectively over the same period in 2009. 

In markets that are only just returning to the pre-Q4 2008 levels we have proceeded cautiously but with encouraging results in our key strategic areas.  The steps we have taken during the period to prepare the business for future growth have been effective and we have already seen good progress from these initiatives.  As a result we enter the second half of the year in a good position to benefit from increasing confidence and continuing recovery in our markets.

Our financial reporting calendar for the remainder of 2010 will be:

Quarter Three, 2010 Results                                      w/c 08 November, 2010

Quarter Four and Full Year 2010 Results                          March, 2011

CEVA -- Making business flow

CEVA Logistics provides world class supply chain solutions for large and medium-size national and multinational companies across the globe. As an industry leader, CEVA offers customers complete supply chain design and implementation in contract logistics and freight management, alone or in combination. CEVA’s integrated global network has facilities in over 170 countries and more than 46,000 employees; all dedicated to delivering consistently excellent operations and supply chain solutions. For the year ending 31 December 2009, the Group reported revenues of €5.5 billion. For more information, please visit


The statements included in this news release, and other statements that are not historical facts, may contain forward-looking statements. In addition to the assumptions specifically mentioned in the above paragraphs, there are a number of other factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, the process of combining EGL and CEVA, the actual effects of recent and future regulatory changes and technological developments, globalization, levels of spending in major economies, the economic downturn in Asia, Europe and the US, including the economic downturn in the automotive sector, levels of marketing and promotional expenditure, actions of competitors and joint venture partners, employee costs, future exchange and interest rates, changes in tax rates, unexpected costs of future business combinations or dispositions and other factors detailed in risk factors and elsewhere in CEVA most recent Annual Reports. 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. 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

Source: CEVA Logistics