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15 August 2011 | Adam Leach
Supply chain business CEVA Logistics reported a
year on year profit increase of a quarter after it took a strategic decision to
focus on logistics management.
The company saw EBITDA profits –
ie those excluding non-recurring items such as restructuring - for the second
quarter of this year hit €81 million (£70.9 million)
compared with €65 million (£56.9 million) for the same period
last year. Performance across the first half of the year also rose as the
company reported EBITDA (earnings before interest, taxes,
depreciation, and amortisation) profits of €152 million (£133.2 million) compared with last year.
Releasing the results to
investors, the company said it was able to counter the decline in the global
freight market by focusing on its freight management services, managing the
overall logistics strategy rather than merely transporting the goods, and
expanding into the Asian market. The push to increase freight management saw
the company increase new contracts in the sector by 17 per cent compared with
on the results, CEO John Pattullo said: “Despite the industry-wide softening of
freight volumes, we have increased freight management business with our global
customers and we have experienced growth in our contract logistics business in
all regions. Our new business performance in the period has been excellent with
significant wins and contract extensions.”
The company’s growth in Asia was
also identified as making a significant contribution. In the first half of this
year CEVA generated more than €1 billion (£870 million)
in new business, with activity in China
identified as contributing particularly strongly.
Last month, the company announced that it had
renewed its contract with the European subsidiary of Honda, Honda UK Manufacturing, to manage the logistics of sourcing
supplies for a further three years.