SOURCE: Ceva Logistic

May 25, 2010 04:45 ET

CEVA Group plc, Announces Quarter One, 2010 Results

HOOFDDORP, THE NETHERLANDS--(Marketwire - May 25, 2010) - CEVA Logistics

  • Revenue of EUR 1.49 billion showing solid year-on-year growth of 14.3%
  • EBITDA before specific items up 73.3%
  • Quarter One business wins stand at EUR 484 million
  • Successful refinancing of over EUR 1 billion of debt. 

CEVA Logistics, one of the world's leading supply chain companies, has today announced its Quarter One, 2010 financial results with solid revenue growth and ongoing business improvements.

"This is a robust start showing considerable year-on-year improvement, with clear evidence that our continued focus on business development, cash management and structural cost reduction is continuing to deliver results," said John Pattullo, CEO, CEVA.

Three months ended 31 March 2010

Key Financials (actual exchange rates)

EUR millions Q1 2010 Q1 2009 Growth
Revenue 1,488 1,302 14.3%
EBITDA before specific items(1) 52 30 73.3%

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

Throughout the Quarter, we have seen revenue growth in our Contract Logistics operations with healthy growth in our retail, consumer and global automotive businesses. 

EBITDA before specific items grew in part due to higher revenues and the continuation of our successful cost reduction program.

As stated at our Full Year 2009 results, the compression of freight management margins, which the industry experienced in Quarter Four of last year, has continued into 2010 as a result of a pickup in volumes coupled with constrained capacity. The impact on EBITDA has been mitigated through increased freight volumes, most notably originating in Asia Pacific. 

We are maintaining our focus on strict cost management and cash flow. Net Working Capital (NWC) is a net minus EUR 1 million at the end of this Quarter and CAPEX dropped to 1.2% of revenue, partly thanks to better asset utilization. In March this year, we successfully refinanced over EUR 1 billion of debt previously maturing between 2014-2016, with the new debt due in 2018. This successful transformation of CEVA's debt maturity profile has been achieved as a result of the continued support for CEVA in the capital markets. It is part of our ongoing strategy to actively manage our balance sheet and take reasonable opportunities to extend maturities and reduce our obligations as they arise.

In the first Quarter new business wins totaled EUR 484 million with ongoing improvements in our share of business within the consumer, retail and technology sectors -- this is directly in line with our 2010 Strategy of focusing on winning a greater share of these businesses.

In summary, although capacity remains a challenge, the first Quarter reflects significant improvements in revenue, EBITDA and volumes in comparison to the same period last year.

Our financial reporting calendar for the remainder of 2010 will be:  
Quarter Two and Half Year results 2010 W/C 09 August, 2010
Quarter Three results 2010 W/C 08 November, 2010

CEVA - Making business flow
CEVA Logistics provides world class supply chain solutions for large and medium-size national and multinational companies across the globe. As an industry leader, CEVA offers customers complete supply chain design and implementation in contract logistics and freight management, alone or in combination. CEVA's integrated global network has facilities in over 170 countries and more than 46,000 employees; all dedicated to delivering consistently excellent operations and supply chain solutions. For the year ending 31 December 2009, the Group reported revenues of EUR 5.5 billion. For more information, please visit

The statements included in this news release, and other statements that are not historical facts, may contain forward-looking statements. In addition to the assumptions specifically mentioned in the above paragraphs, there are a number of other factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, the process of combining EGL and CEVA, the actual effects of recent and future regulatory changes and technological developments, globalization, levels of spending in major economies, the economic downturn in Asia, Europe and the US, including the economic downturn in the automotive sector, levels of marketing and promotional expenditure, actions of competitors and joint venture partners, employee costs, future exchange and interest rates, changes in tax rates, unexpected costs of future business combinations or dispositions and other factors detailed in risk factors and elsewhere in CEVA most recent Annual Reports. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, is contained in the Company's annual and quarterly reports, available on the Company's website. Should one or more of these risks or uncertainties materialize or the consequences of such a development worsen, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. CEVA disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Contact Information

  • For more information contact:
    Ceva Logistics
    Felix Lo
    +852 2942 0236
    Email Contact

    CEVA Group Marketing & Communications
    Rebecca Salt
    +44 7795 314010
    Email Contact