Ceva meets economic challenge - International Freighting Weekly
Ceva Logistics today reported a 13% decline in revenue and a 28% drop in profit (ebitda) for 2009, in what its CEO described as a good response to a “different and demanding” trading environment.
John Pattullo said: “Following a challenging first quarter, we delivered solid and progressive results across the remainder of 2009.”
He said the company was continuing to see steady improvements across the business as the global economy improved.
Revenue dropped to €5.5bn (US$7.5bn) and ebitda to €233m. Net debt decreased by 7% to €2.4bn.
The company said the number of new business wins in 2009 increased by 10% on 2008, and cost-savings programmes were 25% ahead of target, at €125m.
It said the global logistics markets “fell precipitously” in November 2008, and although there was some recovery later in 2009, the overall market had declined by about 12% year-on-year.
“This has had an obvious impact on the business, with reduced volumes,” the company said.
“In the last quarter, we continued to recover volumes and revenues; however, as freight carriers removed capacity and rates increased, we saw price increases that we were unable to pass through immediately to customers.”
Ceva said it expected to recover these margins in 2010.
In Ceva’s key automotive sector, volumes continued to rally during the year, including the fourth quarter.
“We remain focused on our strategy of increasing our share in other sectors to broaden our markets served, and are pleased to report increases in our technology and industrial businesses, with particular growth in the fourth quarter among technology customers,” the company said.
It said its programme of cross-selling generated revenue of more than €550m in 2009
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