Ceva saw EBITDA fall 21.8 per cent to €251m for 2012 despite a rise in sales of 4.8 per cent to €7.2 billion.
The group reported record new business wins of €19 bn – ahead of target for second consecutive year.
Chief executive officer Marvin O Schlanger said: “These are difficult times for everyone in the global logistics industry and Ceva has not been immune to those pressures.
“While our revenue line has been resilient, we have seen a marked deterioration in EBITDA in both our FM and CL businesses. This simply isn’t good enough and we have taken action to reverse this decline in profitability. We will continue to take actions necessary to establish satisfactory levels of profitability.”
Sales in Contract Logistics rose four per cent to €3.9 bn. Ceva said soft conditions across various key markets, most evident in Southern Europe, was compensated by a strong performance in Asia Pacific.
Contract Logistics adjusted EBITDA fell by 24.4 per cent to €149m in 2012, as business was affected by the continuing general economic downturn with lower volumes in various key markets, in particular Southern Europe.
Revenue in Freight Management increased six per cent to €3.3 bn. Lower airfreight volumes, particularly out of Asia, were offset by a solid performance in ocean freight across all regions, the group said.
Freight Management adjusted EBITDA in 2012 fell by 17.7 per cent to €102m, partly due to a modal shift to ocean freight with increased competition and soft airfreight volumes.
Ceva has reached agreement with the largest holders of its second lien notes and senior unsecured debt on a recapitalisation plan to reduce its overall debt and interest costs, as well as increase liquidity and strengthen its capital structure.
It said that on the completion of the recapitalisation, it would reduce its consolidated net debt by more than €1.2 bn, reduce its annual cash interest expense by over €135 million or approximately 50 per cent and receive a capital infusion of some €205 million for investment in its business plan.
Ceva profits slip ‘simply isn’t good enough’, says Schlanger
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