CEVA hit by auto, air freight downturn

CEVA hit by auto, air freight downturn Dutch logistics giant CEVA said it had a net loss of 125 million euros ($170 million) in 2008 compared to a net loss of 196 million euro ($267 million) in 2007.
   The company reported consolidated revenue of 6.3 billion euros ($8.6 billion) for fiscal year 2008, up 32.3 percent from the 4.8 billion euros ($6.5 billion) in 2007. Earnings before interest, taxes, depreciation and amortization (EBITDA) was 320 million euros ($436 billion) up 6.3 percent, before nonrecurring items such as restructuring and integration costs and costs related to is acquisition of EGL in August 2007.
   'In our first full year as an integrated business, we have performed well in difficult trading times and believe we have the momentum and capability to drive the business forward. We intend to achieve this by focusing on three areas: gaining market share, focused cost containment and strengthening our core capabilities,' said John Pattullo, CEVA Logistics chief executive.
   The company said it “has not been immune to the economic slowdown,” and that in the fourth quarter of 2008 it had seen “a reversal in recent revenue and profit growth trends. The main contributory factors were customer volumes reducing particularly in air freight and the inbound automotive sector.”
   The company said fourth quarter revenue was 1.56 billion euros ($213 billion) compared to 1.67 billion euros ($228 billion). EBITDA before nonrecurring items was 58 million euros ($79 million) compared to 99 million euro ($135 million).
   “The outlook for the first quarter of 2009 continues to follow the same trends as seen in the fourth quarter of 2008,” the company said. In the first two months of 2009 it has seen “relatively weak overall transaction volumes and reduced freight flows, broadly consistent with the prior quarter (especially in automotive-related sectors), and we expect more of the same for the remainder of first quarter.”