Ceva’s operating profit doubled between the first and second quarters of 2013, due, it said, to the impact of recent cost control measures, operating improvements and seasonal volume increases.
As a result, adjusted EBITDA of $80m was broadly in line with last year despite a $140m fall in sales. “I am pleased to report that the steps we are taking to restructure the company’s balance sheet and address its cost base are already delivering strong results,” said CEO Marvin O Schlanger.
Adjusted EBITDA increased 34.9 per cent in Contract Logistics where higher margins in the Americas and Europe offset lower volumes in some Asian markets, despite a 1.4 per cent fall in sales.
Ceva said a strong performance in the US was offset by the impact of several contracts that were terminated as part of the cost reduction programme. In addition it experienced lower volumes in several markets, notably in parts of Europe.
In Freight Management, adjusted EBITDA declined 43.6 per cent year-on-year mainly due to lower Airfreight volumes. Sales in Freight Management declined 11.7 per cent.
Group revenue decreased by 6.2 per cent to $2,148 million for the three months to 30 June.
The group’s recapitalisation, completed in in May has cut the group’s net debt by more than half to $1.6bn.