CEVA posts net losses for 2006, first quarter 2007

CEVA posts net losses for 2006, first quarter 2007    CEVA Logistics, created at the end of last year when Dutch firm TNT Logistics was acquired by investment group Apollo Management — winners of the bidding war for EGL Inc. in the United States — reported a net loss of 106 million euros ($142.4 million) for 2006.
   CEVA logged an operating loss of 11 million euros ($14.8 million) for the year, down from an operating profit of 97 million euros in 2005.
   Revenue in 2006 increased 4.3 percent to 3.5 billion euros ($4.7 billion), up from 3.35 billion euros in the previous year, which the company said was the result of growth in the Italy, rest of world, and rest of Europe regions. This was partially offset by a decline in the United Kingdom, CEVA said.
   'During the long and challenging sale process which took place during 2006, our revenue and operating results remained robust,' said David Kulik, CEVA's outgoing chief executive officer. 'We managed a smooth transition from being a division of TNT N.V. to standing on our own as a pure play logistics company. Most important, however, was our capability to maintain the close relationships with our customers, continuing an impressive renewal rate and winning significant new contracts in 2006.'
   John Pattullo of DHL Exel Supply Chain will take over Kulik's role in the second half of the year with the former CEO moving upstairs to become vice chairman.
   CEVA also announced its first quarter results, which included a net loss of 14.9 million euros ($20 million). Operating income improved 3.3 percent to 15.5 million euros ($20.8 million) and revenue was flat at 861.5 million euros ($1.16 billion).
   CEVA blamed the stagnant revenue on a decrease in North America, which was offset by strong growth in all other regions.