CEVA Group manages to improve its performance in 1Q

CEVA Logistics reports results for the three months ending 31 March 2012.

Revenue for the Group increased 2% to ??1,712 million (2011: ??1,686 million) in the quarter. Contract Logistics revenues increased 3% driven by an excellent performance from the Automotive sector, particularly in Asia and North America, as well as strong year-on-year growth in the Industrial sector.

In Freight Management, where revenues were flat overall, Ocean freight performed well following significant management focus in 2011, while disappointing Airfreight performance mirrored a difficult quarter experienced by the broader airfreight market.

Group Adjusted EBITDA at ??66 million was 7% lower than a year ago (2011: ??71 million) partly as a result of the soft Airfreight market.  A continuing focus on structural change programs and tight control of costs helped protect margins.

On 1  February, 2012, CEVA, together with its parent CEVA Investments Limited (‘CIL’), successfully completed a transformational financing, eliminating over ??500 million of CEVA indebtedness and over ??350 million of CIL securities. After quarter end, on 2 May, 2012.

John Pattullo, CEO said “Even in these more difficult markets, CEVA continues to make progress. Our Ocean business performed well and we continued to make solid gains in Contract Logistics driven by excellent performance from the Automotive and Industrial sectors. The Airfreight market continues to be challenging, with CEVA’s performance mirroring that of many of our competitors.” < Korea Shipping Gazette >