CEVA sees airfreight improvement but stays in the red

CEVA Logistics recorded double-digit airfreight growth during the third quarter of the year but revenues declined on currency effects and it reported another loss.
The world’s twelfth largest airfreight forwarder recorded a 1.2% year-on-year decline in revenues during the period to $1.7bn and its net loss for the period stood at $41m, compared with a loss of $58m for the same period last year.
However, airfreight volumes for the period increased by 10.6% against a year earlier and ocean was up 4.4%. During the period, rival forwarders have estimated the air market decreased by around 1% during the quarter.
The forwarder attributed the improvement in air volumes to a mix of new business and increasing share of the business of existing customers.
The performance also compares favourably with its European rivals; Kuhne+Nagel improved by  growth of 3.8%, Panalpina was up 10% and DHL increased by 2%.
DSV did manage to outgrow CEVA, with an increase of 84.5%, but it benefitted from the acquisition of UTi.
On a constant currency basis, revenues crept up to just above $1.7bn while earnings before interest, tax, depreciation and amortisation were on a par with 2015 at $80m.

“CEVA’s top line performance continued in Q3,” said chief executive Xavier Urbain. “We have experienced good growth in Contract Logistics revenue driven by market share gains.

“Our freight management business line continues to outperform also, with volume growth in air of 10.6% and ocean of 4.4% both representing sequential improvements.

“We have had a number of customer wins in Q3 and our new business pipeline is strong. This demonstrates that our strategy is working and delivering results,”

“Our Operational Excellence Program is being implemented successfully and is anticipated to generate benefits that will accelerate in upcoming quarters.

“I am confident that the actions we continue to implement will drive robust performance in both our revenue and margins in 2017.”