CEVA says first quarter results “encouraging”

CEVA says first quarter results “encouraging”

CEVA says first quarter results “encouraging”

CEVA Group Plc said its first quarter results showed “both the contract logistics and the freight management divisions performed in line with expectations.”
   The company said revenue in the first three months of the year was 1.5 billion euro (about $2.37 billion), up 74 percent over the same 2007 period.
   CEVA was formed when TNT Logistics and EGL merged in August 2007.
   The company also reported pro forma revenue using 2007 exchange rates, as if the merger of TNT and EGL was effective Jan. 1, 2007. Using that measure, revenues were 1.58 billion euro ($2.49 billion), up a more modest 8 percent.
   The company did not report net profit, but said earnings before interest, tax, depreciation, and amortization (EBITDA) was 72 million euro ($113.5 million), up 44 percent. On a pro forma basis, the company said EBITDA was 77 million euro ($121.3 million, down 1 percent. This reflects an adjustment to 2008 for the 12 percent weakening of the U.S. dollar and 11 percent weakening of the British pound.
   “These are encouraging results that show our business goals are being achieved,' said John Pattullo, chief executive officer of CEVA. 'We are especially pleased with several big new contract wins in the first quarter, which will contribute significantly to our growth over the rest of the year. It is pleasing to see that only months after the integration of the two former businesses we are more and more facing the market as one company and one team. CEVA is solidly on track.
   “Our actual figures have been adversely affected by the deterioration of exchange rates for the U.S. dollar and the British pound against the euro. EBITDA growth is below revenue growth due to heavy investment in additional business development resources, new country and product startups, and new initiatives. We are confident our aggressive growth program will yield dividends in the coming months,” he added.