CEVA’s cargo rise in Q2

LOGISTICS giant CEVA is celebrating ocean freight and airfreight volumes rising by seven and one per cent respectively during the second quarter of this year, writes Thelma Etim, deputy editor.
New business was also up 31 per cent to US$763m in comparison to $582 million for the same period in 2013.
Investment in its tender management and trade lane management, as well as field sales force contributed to the improved results, says a company statement.
However, overall earnings declined 4.2 per cent to $1,978m in the second quarter in comparison with $2,064m for the same period last year. This followed a successful recapitalisation of the business – and the deliberate termination of ‘lower margin business’, says a statement.
“Second quarter revenues were up 6.1 per cent sequentially compared with the first," it adds.
“Our performance improvement, coupled with the strong increase in our new business pipeline, points to the company being on the right track for growth,” enthuses chief executive Xavier Urbain.
“Since joining CEVA in January, I have focused on strengthening the executive management team, expanding our current talent base with additional industry experience to drive forward our strategy, building revenue and improving operational efficiency for the benefit of our customers.”
“The numbers show we are gaining traction and are positioned well to make further progress in the future,” he concludes.
For the second quarter, adjusted EBITDA of $60m was 40 per cent ahead of the previous quarter and adjusted EBITDA as a percentage of revenue improved from 2.3 to 3.0 per cent, reflecting continuing strength in contract logistics and the termination of lower margin business.
But EBITDA came in 25 per cent lower than in the same period a year earlier as freight management revenues were impacted by lower rates in the market.
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