CEVA reports $41m loss in Q3 2016

The Netherlands-based third-party logistics provider posted a third quarter loss of $41 million compared with a $51 million loss the previous year as revenues slipped 1.2 percent to $1.68 billion, according to the company’s most recent financial statements    CEVA Holdings LLC posted a $41 million loss in the third quarter of 2016 compared with a $51 million loss in the same 2015 period, according to the company’s most recent financial statements.
   The Netherlands-based third-party logistics provider’s revenues slipped 1.2 percent to $1.68 billion compared with the third quarter of 2015. CEVA noted adjusted earnings before interest, taxes, debt and amortization (EBITDA) were flat compared the previous year in constant currency at $80 million, while revenues ticked up 0.9 percent to $1.72 billion for the quarter.
   The company attributed the performance primarily to market share gains and cost reductions.
   CEVA’s freight management division reported EBITDA before specific items of $27 million in third quarter 2016, a 12.5 percent increase from the same 2015 period. Freight management revenues dropped 3.1 percent year-over-year to $760 million.
   According to the company, the decline in revenues was attributable to the strengthening of the U.S. dollar against other currencies like the British pound and Chinese yuan, as well as a low rate environment, mainly due to the continuous pressure on fuel rates as well as the increase in carrier capacity relative to market demand. Airfreight volumes increased 10.6 percent year-over-year for the quarter against a “soft” market, while ocean volumes grew 4.4 percent despite diminishing demand.
   EBITDA before special items in CEVA’s contract logistics unit, on the other hand, tumbled 20.8 percent to $38 million in the third quarter. Revenues in the division were up 3 percent year-over-year to $942 million for the quarter.
   For the first nine months of 2016, the company narrowed its net losses to $72 million from $170 million in the same 2015 period. Year-to-date revenues stood at $4.9 billion, a 6.2 percent decline from the previous year.
   “CEVA’s top line performance continued in Q3,” CEVA CEO Xavier Urbain said of the results. “We have experienced good growth in Contract Logistics revenue driven by market share gains. Our Freight Management business line continues to outperform also, with volume growth in Air of 10.6 percent and Ocean of 4.4 percent both representing sequential improvements. We have had a number of customer wins in Q3 and our new business pipeline is strong. This demonstrates that our strategy is working and delivering results.
   “Our Operational Excellence Program is being implemented successfully and is anticipated to generate benefits that will accelerate in upcoming quarters,” he added. “I am confident that the actions we continue to implement will drive robust performance in both our revenue and margins in 2017,” he continued.