CEVA’s loss widens in 2017 despite higher volumes, revenues

Third-party logistics provider CEVA Holdings posted a loss of $197 million in 2017 compared with a $159 million loss the year before, according to the company’s most recent financial statements.    CEVA Holdings LLC, a non-asset based supply chain management company headquartered in Hoofddorp, the Netherlands, sunk deeper into the red in 2017 despite improvements in revenues and volumes.
   According to the third-party logistics provider’s most recent financial statements, CEVA recorded a loss of $197 million for the full year in 2017, compared with a $159 million loss the year before, even as revenues climbed 5.2 percent to $6.99 billion.
   Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), on the other hand, jumped 10.2 percent year-over-year to $280 million, CEVA said.
   CEVA’s freight management division saw its revenues rise 8.9 percent to $3.3 million in 2017.
   Airfreight volumes grew 11.6 percent to 480,000 metric tons for the year, boosted by a “particularly strong Q4 performance on transpacific trade lanes,” while ocean volumes increased 4.7 percent to 729,000 TEUs, the company said. 
   Revenues in CEVA’s contract logistics unit grew 2.2 percent to $3.7 million in 2017, and the company said that growth is expected to continue in 2018 thanks to “a number of important business wins in recent months.” 
   “I am pleased to report a strong finish to a good year” Xavier Urbain, CEO of CEVA, said of the results. “Our Excellence Program has delivered important cost savings and has supported much better profits despite market headwinds. At the same time, revenue growth across Contract Logistics and Freight Management has been very good. With stronger revenue, profits and cash flow, we have delivered on all our objectives.
   “CEVA’s competitive position has much improved as evidenced by the important business wins we have had in recent months,” he added. “Through the transformation we have initiated in 2014, CEVA is a much stronger company now. However, we still have ample opportunities to improve margins and deliver even better service to our clients – this is what we are working on.”