Ceva’s adjusted EBITDA was up 25 per cent in the second quarter to $75 million, but currency movements meant that revenue was down 10 per cent to $1.8 billion.
Contract logistics saw EBITDA margin rise to 5.5 per cent from 4.9 per cent in the first quarter. This was driven by focusing on underperforming contracts and effective warehouse space utilisation. Contract Logistics revenue was up 0.9 per cent year-over-year in constant currency.
The Freight Management business also saw significant EBITDA improvement in the second quarter as a result of productivity increases, process improvements and effective transport procurement.
Q2 Air Freight volumes were up 0.7 per cent year-on-year due to a weakening Asia Pacific export market. Ocean Freight volumes were up 4.0 per cent year-on-year reflecting solid growth in Europe.
“The benefits resulting from Ceva’s new operating model are accelerating,” said CEO Xavier Urbain.
“As the second quarter illustrates, execution of our strategy is producing visible progress and increased profitability. We foresee significant upside potential by continuing this focus on operational excellence and efficiency for both our customers and ourselves. We continue to invest heavily in Business Development both on Key Accounts and Small and Medium-sized Enterprises to drive top-line growth.”
* Ceva has launched of a new global Project Logistics Division, reporting to Helmut Kaspers, chief operating officer, Global Air and Ocean Freight. It plans to use expertise from its Energy (Oil, Gas, Renewal) sector services to other sectors, with a particular focus on industrials, aerospace and mining.