CEVA losses narrow as airfreight volumes decline

Logistics firm CEVA recorded a decline in airfreight volumes during the third quarter of the year, but it did manage to narrow its net losses.
The Netherlands-headquartered forwarder, which has been in the process of re-organisation, recorded a 4% year-on-year decline in airfreight volumes during the third quarter of the year while air revenues for the period were up 6% on a year earlier.
It said the decline in airfreight volumes was the result of a decline in global demand while revenues were up on the back of “an improved procurement setup in a declining rate environment”.
Despite the decline, CEVA claimed to have gained market share on trade lanes where it has a strong presence, such as Asia-Europe and the transpacific.
In comparison, Kuehne + Nagel recorded a 5.1% increase in third quarter airfreight volumes, DSV saw a 9.6% jump and Panalpina netted a 2.8% decrease. DSV estimated overall market growth of around 0-1%.
Overall company revenues for the period declined by 13.1% year on year to $1.7bn and it recorded a net loss of $58m, compared with a $92m loss a year ago.
Third-quarter earnings before interest, tax, depreciation and amortisation reached $67m against $49m last year.
CEVA chief executive Xavier Urbain  said: “CEVA’s new operating model continues to pay off. Despite overall industry headwinds, our performance in the third quarter was robust and we continue to defend our position in a generally soft market.
“Our focus on process and product improvement for all business lines has allowed us to increase profitability in spite of difficult industry volume evolution.
“Our air & ocean business lines now have the right organisational structures in place allowing them to take advantage of a better aligned procurement approach.
“Additionally, our focus on quality trade lanes and those where we have a strong presence allowed us to gain share on key routes.
“CEVA was also able to create opportunities with major customers across all of our customer segments: small medium-sized enterprises, multinational companies and global key accounts.”
The company said its business pipeline remained strong in the third quarter, with a 9% increase over the previous year.
It added that it would continue to invest in its field sales team, which has grown by some 20% compared to the same period last year, with "a solid focus on increasing sales to small and medium-sized enterprises as well as multinational companies".