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6 March 2012 | Adam Leach
CEVA Logistics has reported record revenues and strong growth for 2011 as it reaped the benefits of offering more flexible shipping volumes and renewed a number of contracts, its full year results revealed.
The company, which offers supply chain management and logistics services, reported revenues of €6.9 billion (£5.7 billion) for the year and an increase of adjusted profits of 9.9 per cent to €321 million (£267 million). The company cited increased profit margins and volumes in its contract logistics division as a key driver of growth.
Commenting on the results, John Pattullo, CEO, said: “2011 was a year of strong progress for CEVA. We improved our financial performance substantially in the first half year and have maintained performance in a more challenging economic environment in the second half.”
The growth came despite lower transportation rates and a drop in demand for airfreight as its Oceanfreight division delivered a 17 per cent increase in order volumes. The growth in the division came as it broadened the offering of the division. During the year it launched the ‘Less-Than-Containerload service’, which gave customers the chance to transport lower volumes of goods.
The group estimated that it incurred a net cost of €7 million (£5.8 million) as a result of floods in Thailand. However, it reported that it is seeing a ‘return to normality’ for its operations in the country. During the fallout from the floods, the company took a number of steps to support customers through the disruptions, such as re-routing shipments and integrating customers’ IT servers into its own network.
It also revealed that it had retained more than 90 per cent of contracts that were up for renewal during the year and increased new business wins by 17 per cent, with an increasing amount of wins in high-growth areas. The results said: “Wins were also spread across the globe and we now have over 40 per cent of our business in high growth areas such as Asia Pacific, Latin America, the Middle East and Africa.”