The Netherlands-based third-party logistics provider posted a second quarter loss before interest and taxes (EBIT) of $34 million compared with a $51 million loss the prior year, according to the company’s most recent financial statements.
CEVA Holdings LLC posted a second quarter loss before interest and taxes (EBIT) of $34 million compared with a $51 million loss the previous year, according to the company’s most recent financial statements.
The Netherlands-based third-party logistics provider’s revenues fell 5.5 percent to $1.6 billion compared with the second quarter 2015. CEVA noted its adjusted earnings before interest, taxes, debt and amortization (EBITDA) rose 1.6 percent in constant currency to $118 million for the quarter.
The company’s freight management division reported EBITDA before specific items of $20 million in the second quarter 2016, an 11.1 percent increase from the same 2015 period. Freight management revenues dropped 8.3 percent year-over-year to $738 million
CEVA attributed the decline primarily to the strengthening of the U.S. dollar and a low rate environment that has been driven by continuous pressure on fuel rates and increases in carrier capacity relative to market demand. Airfreight volumes increased 6.6 percent year-over-year for the quarter, while ocean volumes grew 2.2 percent despite a “flat” market and diminishing demand.
EBITDA before special items in CEVA’s contract logistics unit, on the other hand, slipped 29.8 percent to $33 million in the second quarter due to incremental start-up costs and higher than anticipated costs in a limited number of facilities driven by product mix changes. Revenues in the division were down 3.1 percent year-over-year to $928 million for the quarter.
For the first six months of 2016, the company narrowed its EBIT loss to $69 million from $128 million in the same 2015 period. First half revenues stood at $3.2 billion, an 8.7 percent decline from the previous year.
“CEVA’s forward momentum continues in line with our strategy. Our half-year performance demonstrated stable net revenue in the first half driven by above-market growth in air and ocean freight and resumed growth in Contract Logistics,” CEVA CEO Xavier Urbain said of the results.
“This is good progress, however we won’t stop here. As the logical next step in CEVA’s evolution, a global operational excellence program was started in April to take the organization to the next level by simplifying and applying consistent standards and best practices across the organization with the goal of better serving our customers. This program will also help us to deliver additional productivity improvements for all our business lines.
“We have successfully introduced a new structure for Freight Management in the US and have an experienced management team in place,” added Urbain. “With the roll-out of our One Freight System in North America, CEVA can now provide customer shipment oversight through a single, global freight management system. Our ongoing investment in field sales teams led to a number of significant new business wins and renewals in the Automotive, Consumer & Retail and Technology sectors.”
CEVA narrows EBIT loss in Q2 2016
