CEVA Logistics reported strong earnings of EUR321 million (US$422 million) in 2011, a 10 percent growth, and a record revenue of EUR6.9 billion, an increase of 1 percent, over the previous year.
In a March 6 statement, the company said its “robust performance” was due to increased operational efficiency, new clients, and reduced costs.
The group also completed an equity and debt-funded financing deal in early 2012 that eliminated over EUR850 million in debt.
John Pattullo, CEO, said 2011 was “a year of strong progress” for The Netherlands-based supply chain management company. “We improved our financial performance substantially in the first half year and have maintained top line performance in a more challenging economic environment in the second half.”
CEVA said that the flooding in Thailand had a net impact of about EUR7 million but that the company was now seeing a return to normality in its Thai business.
At constant exchange rates, there was a 13 percent ebitda growth, driven by contract logistics volumes and an improved margin in freight management, partly due to structural improvement programs.
In oceanfreight, the company saw a 17 percent increase in traffic, as it launched its less-than-containerload service and expanded ocean services.
The year 2011 also yielded new business wins of over 17 percent, with a retention rate of over 90 percent. “As a result, we have achieved a more balanced sector portfolio. Wins were also spread across the globe, and we now have over 40% of our business in high growth areas, such as Asia Pacific, Latin America, the Middle East and Africa,” said the company.
For 2012, CEVA said it expects the economic uncertainty of the last few months to continue. “We believe that we have identified and prioritized the right actions to continue to strengthen our business model, even with this external background, and build our market position so that we outperform our peer group in 2012,” said Pattullo.
Photo courtesy of Ceva Logistics
