CEVA Group plc results for the First Half and Second Quarter ended 30 June 2011

 
– EBITDA of €81 million in Quarter Two – 25% year-on-year increase– Quarter Two revenues of €1,713 million

– €1.0 billion of new business wins in H1 2011.

 

Hoofddorp, The Netherlands, 15 August 2011 – CEVA Logistics, a leading global non-asset based supply chain management company, today reports strong underlying performance, at constant exchange rates, in the second Quarter, building on the momentum established in the second half of 2010 and Quarter One 2011.

Second Quarter ended 30 June 2011  

€ millionsQ2 2011Q2 2010ChangeChange at constant currency
Revenue1,7131,744(1.8)%3.8%
EBITDA before specific items1816524.6%35.4%

1EBITDA excludes the impact of specific items which are significant non-recurring items such as restructuring, integration costs, and certain legal expenses.

First Half ended 30 June 2011

€ millionsH1 2011H1 2010Change

 

Change at constant currency
Revenue3,3993,2325.2%6.8%
EBITDA before specific items115211729.9%34.2%

1EBITDA excludes the impact of specific items which are significant non-recurring items such as restructuring, integration costs, and certain legal expenses.

Commenting on the results, John Pattullo, CEO said: “Our performance in Quarter Two demonstrates a solid continuation of positive trends over the past year.  Despite the industry-wide softening of freight volumes, we have increased Freight Management business with our global customers and we have experienced growth in our Contract Logistics business in all regions.  Our new business performance in the period has been excellent with significant wins and contract extensions.”

Results

At actual exchange rates, reported revenue was €1,713 million and EBITDA was €81 million. Results for the second Quarter were impacted by fluctuating exchange rates.  Expressed at constant exchange rates, revenue and EBITDA increased 3.8% and 35.4% respectively compared to the same period last year. 

Total revenue for the First Half of 2011 is €3,399 million, up 5.2% on the same period last year, and EBITDA of €152 million, an increase of 29.9% on the first six months of 2010.  At constant exchange rates revenue increased 6.8% with EBITDA up 34.2% over the same period in 2010.

The Group has achieved good year-on-year improvements in new business performance, recording over €1.0 billion of new wins in the first six months of 2011, particularly in China and with CEVA’s Century customers: a group of approximately 100 large global customers who represent over 50% of revenue. 

In line with trends reported widely in the industry, the Group saw some softening of the global freight market, driven mainly by lower airfreight volumes predominantly in the Americas and Asia Pacific regions.  However, CEVA was able to maintain flat year-on-year revenues, at constant exchange rates, by increasing Freight Management business wins by 17% year-on-year, with new business across all regions and particularly in the Technology, Automotive and Energy sectors.  Revenue in the Contract Logistics business increased by approximately 9% year-on-year at constant exchange rates.  This growth was experienced in all regions, driven by new contract wins and the continued expansion of solutions offered to existing customers.

The Group has continued to focus on strong cash management and control of net working capital.  Net working capital at the end of the second Quarter of 2011 was only €19 million compared to €57 million at the end of Quarter Two 2010.

In summary, our well defined, integrated and non-asset based business model continues to perform.  Looking forward, we are confident it will continue to provide competitive advantage.

For more information contact:

CEVA Group Marketing & Communications
Rebecca Salt
+44 7795 314010
Rebecca.Salt@cevalogistics.com

 

 

CEVA – Making business flow
CEVA Logistics, one of the world’s leading supply chain companies, designs and implements industry leading solutions for large and medium-size national and multinational companies. Approximately 50,000 employees are dedicated to delivering effective and robust supply chain solutions across a variety of sectors and CEVA applies its operational expertise to provide best-in-class services across its integrated network, with a presence in over 170 countries. For the year ending 31 December 2010, the Group reported revenues of €6.8 billion. For more information, please visit www.cevalogistics.com

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