CEVA revenues drop 1.3% in Q4

The logistics provider recently implemented a new operating model and launched an independent global Healthcare sector.    CEVA Holdings LLC reported fourth quarter 2014 revenues of 2.03 billion, down 1.3 percent from the fourth quarter of 2013. The non‐asset based supply chain management company noted that in constant currency, Q4 revenue increased 3.5 percent compared to Q4 2013.
   Adjusted EBITDA increased 33.9 percent year-over-year, excluding a one-time pension curtailment gain in Q4 2013. Year-over-year EBITDA decreased 2.6 percent when adjusted to include the pension curtailment.
   According to CEVA, “Successful implementation of complex new business contributed positively to Q4 revenue growth.”
   Freight management volume growth for the company remained healthy in the fourth quarter, with year-over-year airfreight volumes up six percent and ocean freight volumes up more than 10 percent, both outperforming the overall market.
   “The fourth quarter caps a productive year of building CEVA’s competitive advantage,” said CEO Xavier Urbain. “We enter 2015 with an executive management team of seasoned industry leaders and a go-to-market strategy based upon Business Lines in Freight Management (Air Freight and Ocean Freight) and Contract Logistics to enhance customer value.
   “On 1 January, 2015, we implemented our new local-based operating model to drive operations excellence in our global network and to be a more responsive and innovative partner to our customers,” Urbain added. “Our customers’ reaction to our progress is highly positive, as evidenced by Q4’s top line growth.”
    The company began implementation of a new operating model as of Jan. 1, 2015, eliminating region-based structures globally and moving to structure with 17 local geographic clusters of countries featuring uniform governance and business rules. CEVA said of the change, “The new model increases the responsibility of local leadership – those who are closest to the market and to the customer – allowing for faster decision-making in support of our customers and greater agility and responsiveness to emerging and established market opportunities.”
   CEVA expects its new business model to generate $50 million to $60 million in annual savings after a one-time cost of approximately $30 million.
   The Netherlands-based logistics provider also recently launched an independent global Healthcare sector, which was previously a sub-sector of its Consumer and Retail business unit. The new Healthcare division, which will focus on medical disposables, medical devices, vaccines, biotech, and pharmaceuticals, is expected to generate revenues of more than $300 million annually.