HOOFDDORP, The Netherlands, March 9, 2011 /PRNewswire-Asia/ -- CEVA Logistics, a leading global supply chain management company, has today reported record revenue and robust EBITDA performance for the year to 31 December 2010, building on the momentum established in the third quarter.
Commenting on the results, John Pattullo, CEO said: "I'm delighted with the progress made across the Group in 2010. After a challenging start to the year, we have focused relentlessly on business basics and on driving a series of transformational projects.
"We have a well defined operating model, a clear plan for future growth and have established good momentum as we enter 2011. We are confident that we will continue to grow both revenue and profit in the coming months."
Year and Fourth Quarter ended 31 December 2010
Key Financials at actual exchange rates
| € millions | 2010 | 2009 | Change | Q4 2010 | Q4 2009 | Change |
| Revenue | 6,847 | 5,494 | 25% | 1,800 | 1,481 | 22% |
| EBITDA before specific items(1) | 292 | 233 | 25% | 89 | 66 | 35% |
(1)EBITDA excludes the impact of specific items which are significant non-recurring items such as restructuring, integration costs, and certain legal expenses.
Overview of results
The strong momentum established in the Third Quarter continued with Quarter Four revenue up by 22% on the prior year and EBITDA up by 35%. As a result CEVA ended the year with Full Year revenue up by 25% at €6.8 billion and EBITDA up by 25% at €292 million. This represents a significant step forward for the Group following the precipitous falls in global logistics markets in late 2008 due to the financial crisis. Fourth Quarter revenue and EBITDA were well above 2008 levels (which were €1.6 billion and €58 million); up 15% and 53%, respectively.
CEVA's progress builds on general market recovery where activity levels have now recovered to pre-recession levels together with its comprehensive program of initiatives to deliver sustainable reductions in cost, efficiency increases and margin improvement. There were four major projects in 2010:
Review of Operations
Geographically CEVA has delivered good results around the world, particularly in Asia Pacific and the Americas, both regions benefitting from actions to strengthen and grow its business. The Asia Pacific region was driven by strong performance in China and its joint venture in the automotive sector alone contributed €94 million to the Group's revenue. CEVA also expanded its relationship with one of the world's largest cosmetics and beauty companies in Indonesia and India.
Growth in the Americas was broad-based. A robust performance in the automotive sector underpinned good growth in Contract Logistics and CEVA made excellent progress in Freight Management. It managed the global supply chain associated with two of the biggest product launches ahead of the Christmas holiday season for one of its multinational technology customers.
In Northern Europe revenue was above 2009 levels but economic recovery lagged somewhat as Europe encountered the Iceland volcanic ash cloud, the repercussions of cargo security threats and a particularly harsh early winter snowfall. Despite these factors CEVA made quarter on quarter improvements in EBITDA as its program of initiatives gathered pace across the Region. During the year CEVA made important progress in Healthcare, winning its first contract in the Czech Republic and it was selected to manage the first of four Multi-Market Warehouses for a global pharma company.
2010 was a milestone year in the SEMEA region as CEVA diversified revenues significantly. New business wins increased 60%, reinforcing its market leadership in Italy, where CEVA entered the Pharmaceutical market through an acquisition in June, and contributing to CEVA becoming number one in the Turkish logistics market where CEVA doubled its revenue. CEVA expect emerging markets to continue to play a key role in its development in this region.
Financial review
CEVA's financial performance improved significantly in 2010. It delivered better earnings, improved margins and enhanced liquidity driven by its ongoing focus on the programs described above and delivered considerable cost savings in 2010. These programs will continue in 2011. CEVA has adequate headroom to fund both its daily operations and continued growth ambitions.
During the year CEVA refinanced a major portion of its debt, with much of it now maturing in 2017 and 2018. Over the past 18 months CEVA have reduced its debt due by the end of 2014 by over 70%. CEVA has also added a new US$250 million borrowing facility at attractive rates.
Outlook
With markets now recovering around the world, CEVA is pleased to be entering 2011 with a strong business model, a clear plan for future growth and with good momentum. CEVA is confident that it will continue to grow both revenue and profit in the coming months.
CEVA - Making business flow
CEVA Logistics, one of the world's leading supply chain 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 €6.8 billion. For more information, please visit www.cevalogistics.com
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT of 1995:
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 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
Email: Rebecca.Salt@cevalogistics.com
