CEVA Logistics reported a 2 percent increase in its first quarter revenue for this year, but noted a 7 percent drop in earnings before interest, taxes, depreciation, and amortization (EBITDA).
The Netherlands-based logistics group said in a May 8 financial statement that its revenue for the quarter ended March 31, 2012 rose to EUR1.71 billion (US$2.2 billion) against EUR1.68 billion year-on-year.
But EBITDA dipped to EUR66 million compared to EUR71 million for the same period a year ago, which the company partly traced to a soft airfreight market.
At constant exchange rates, adjusted EBITDA fell 11 percent, while sales declined 1 percent.
Contract logistics revenues increased 3 percent on the excellent performance of the automotive sector, particularly in Asia and North America, as well as strong year-on-year growth in the industrial sector.
In freight management, revenues were flat overall, while ocean freight performed well following significant management focus in 2011. A disappointing airfreight performance “mirrored a difficult quarter experienced by the broader airfreight market,” the logistics giant said.
For the rest of the year, the company said it intends to focus on structural changes, market position buildup, and tight control of costs to protect margins.
