[310718.EN.BIZ] CEVA Posts US$45m Loss As Sales Rise 7.3pc

EUROPEAN forwarding giant CEVA Logistics, formerly of the Netherlands, but now of Baar, Switzerland, posted a US$45 million second quarter net loss despite a 7.3 per cent year-on-year increase in revenues to $1.8 billion.

CEVA blamed most of the loss on the issuance of 30 million new shares via an initial public offering including a placement with French shipping giant CMA CGM Group, which now owns 24.9 per cent of the company.

But adjusted pre-tax profit (EBITDA), excluding the impact of the share sale, increased 10 per cent to $77 million.

Proceeds from the share sale will go to pay down debt, which CEVA reduced from $2.2 million to $1.1 million at the end of the second quarter.

CEVA's freight management segment quarterly pre-tax profit surged 35 per cent to $27 million on revenues of $853 million, up 8.1 per cent. Growth was boosted by an 8.3 per cent jump in ocean freight, offset by a 1.3 per cent slip in air cargo.

"Implementation of new contracts won in the spring tender season will drive volume growth going forward," the company said.

Pre-tax profit in contract logistics was unchanged at $39 million, while revenues grew 6.8 per cent to $996 million.

"CEVA continues to perform well. We now have achieved seven consecutive quarters of strong topline growth and stronger EBITDA," said CEO Xavier Urbain.

"We continue to reduce our cost base, work on productivity and address our underperforming activities. In the first half of the year, margin growth has been skewed towards freight management.

"We expect contract logistics to make more progress in the second half of the year as we have largely addressed the issues. We are committed to further improving our margins and are moving in the right direction.

"We are also making progress in developing our partnership with our new strategic shareholder CMA CGM," Mr Urbain said.

Source : HKSG.