CEVA Q2 loss widens despite higher revenues, volumes

The non-asset-based supply chain management and third-party logistics provider’s airfreight volumes soared 15.6 percent year-over-year during the quarter, fueled by the transpacific and intra-Asia trades.    CEVA Holdings, LLC, a non-asset-based supply chain management company based in Hoofddorp, the Netherlands, widened its loss in the second quarter of 2017 to $45 million, mainly due to finance expenses, the company said.
   CEVA’s loss for last year’s second quarter totaled $35 million. Revenues, meanwhile, inched up 3.3 percent year-over-year to $1.7 billion for the quarter.
   Net finance expense for the second quarter of 2017, which was negatively impacted by an unrealized foreign exchange loss of $13 million, stood at $80 million, compared to $33 million for second quarter 2016. Interest expenses and other finance charges totaled $69 million for the quarter, up from $51 million the previous year.
   Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $70 million for the quarter, rising 9.4 percent year-over-year.  Adjusted EBITDA includes the proportional contribution of the ANJI-CEVA joint venture and does not include specific items and share-based compensation costs, the company said.
   In CEVA’s Freight Management segment, revenues totaled $789 million for the quarter, rising 6.9 percent year-over-year.
   Airfreight volumes soared 15.6 percent from last year’s second quarter, thanks to the transpacific and intra-Asia trade lanes. Meanwhile, ocean freight volumes rose 3.5 percent year-over-year, fueled by volumes out of Asia, along with the Europe to Middle East trade.
   In the Contract Logistics segment, revenues increased 0.4 percent from the second quarter of 2016 to $932 million.
   “New business wins, particularly in automotive, consumer and retail, and e-commerce, ensured continued top-line growth in Contract Logistics in Q2,” CEVA said.