Ceva Logistics is on track to hit its cost savings target of 100 million euros by the end of the year.
The savings are the result of a mix of initiatives including consolidation and tightening up cash management.
It has also seen a 21 per cent increase in new business wins during the first nine months of 2009, compared to the same period in 2008.
Chief financial officer Rubin McDougal says the company will continue to “aggressively seek new business wins” well into 2010, into which it will channel some of the 100m euros.
Third quarter EBITDA was 68m euros – a one million drop from the second quarter’s 69m euros – despite the usual seasonal shutdown in Europe.
McDougal points to the significant rate increases in the airfreight industry as being one of the main causes for the one million fall. However, airfreight volumes have improved, as have ocean freight volumes.
Although the results show a 33.3 per cent fall compared to the same period in 2008, chief executive John Patullo says the group is “making positive headway”.
“Following a difficult Quarter One in 2009, we delivered strong progress in Quarter Two. I am pleased to report that we have maintained this momentum in Quarter Three,” he added.
Overall, sales have slipped 15.7 per cent during 2009.
So far Ceva has made 264 million euros for the year in cross-selling – 71 million euros in the third quarter. This has helped it smash its cross-selling target of reaching 500m euros by 2010. It is now at 515m euros.
“The market is at a plateau right now, but we feel pretty good that we’re past our first quarter results,” says McDougal, who reckons the company is in a “sound position” as it heads into the new year.
Ceva’s fourth quarter and full year 2009 results will be announced in March, 2010.