CEVA air slump
07 / 11 / 2011
CEVA Logistics’ third quarter air business has been impacted by declines in market volume, particularly in Transpacific airfreight lanes.
The company has reported revenue for the quarter of €1.76 billion (US$1.51 billion) up year-on-year by 1.2 per cent.
Year to date EBITDA increased to €238 million ($204 million), up year-on-year by 17.2 per cent and 21.9 per cent at actual and constant exchange rates respectively.
Actions taken over the past 18 months to reduce costs and improve operational efficiency have resulted in better margins and increased EBITDA in markets that have become tougher in recent months. Third quarter revenue growth benefitted from continued good progress in contract logistics, which grew revenue 2.5 per cent year-on-year.
The company is standardising business processes across freight management operations, outsourcing back office finance operations and transforming finance processes and in freight management, centralising procurement, capacity management and control of key operations.
With external markets remaining volatile, CEVA expects the uncertainty of the last few months to continue