CEVA profits after changing tack

15 August 2011

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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 2010.

Commenting 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.

Calderbridge, Seascale
£52,518 - £64,233
London (Central), London (Greater)
£35,156 - £42,479 p.a. + £2,623 London Allowance + Pension
GPA Procurement
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