CEVA narrows Q1 loss despite revenue decline

The non-asset based supply chain management provider posted a net loss before taxes of $35 million for the first quarter of 2016, compared to a $77 million loss the previous year, despite revenues dropping 11.8 percent year-over-year to $1.57 billion.    CEVA Holdings LLC, a non-asset based supply chain management provider headquartered in Hoofddorp, the Netherlands, posted a net loss before taxes of $35 million for the first quarter of 2016, compared to a net loss before taxes of $77 million for the first quarter of 2015, according to the company’s most recent unaudited financial statements.
   Revenues for the quarter fell 11.8 percent year-over-year to $1.57 billion.
   The Contract Logistics division’s revenues  dropped 9.1 percent from the first quarter of 2015  to $886 million.
   Meanwhile, revenues at the Freight Management division totaled $680 million for the quarter, a 15.1 percent decline from the first quarter of 2015, which CEVA said was partially a result of the stronger U.S. dollar against several other currencies, along with a low rate environment, primarily driven by the continuous pressure on fuel rates.
   During the quarter, CEVA launched a weekly less-than-containerload service from Shanghai to Budapest, Hungary.
   In addition, the company expanded operations in Australia during the quarter with the opening of a new 60,000-square-meter multi-user complex at Hazelmere, along with a 40,000-square-meter integrated transport and new vehicle storage facility at High Wycombe. Hazelmere and High Wycombe are located in Western Australia, just outside of Perth.
  The company also renewed and expanded its services to Ford Motor Company at Ford’s Louisville Assembly Plant in Louisville, Ky.
   “2016 continues the trend we started in 2015. Market headwinds continue to affect all industry players, yet despite this climate, CEVA Air and Ocean volumes increased by 1.5 percent and 1.0 percent, respectively,” CEVA CEO Xavier Urbain said in a statement. “We also maintain forward momentum through our ongoing focus on productivity and procurement improvements in both Freight Management and Contract Logistics. In parallel, we continue to strengthen our market share on the transpacific trade lane.”