CEVA reports mixed Q2 results

The Netherlands-based logistics provider reported a 25 percent year-over-year increase in EBITA despite a 10.2 percent decline in net revenues for the second quarter of 2015.    CEVA Holdings LLC reported second quarter 2015 revenues of $1.78 billion, a year-over-year drop of 10.2 percent. The Netherlands-based logistics provider said that in constant currency, the second quarter revenue increased 0.3 percent year-over-year. Results were helped by volume growth, but partially offset by lower freight rates and fuel prices, CEVA said in its most recent financial statements.
   Adjusted EBITDA increased 25 percent year-over-year in the second quarter, which CEVA attributed to an improvement in the Freight Management margin from continued focus on productivity increases, process improvements and effective transportation procurement. In constant currency, adjusted EBITDA was up 31.7 percent year-over-year in the second quarter.
   Airfreight volumes were up 0.7 percent year-over-year in the second quarter, a result of the weakened Asia Pacific export market.
   Solid growth in Europe resulted in a 4 percent year-over-year increase in the second quarter for ocean freight volumes.
    Meanwhile the third party logistics company announced this week the opening of its Home Delivery Service Center in Houston, Texas, which provides specialized delivery services for heavy or bulky items to consumers’ residences. The facility had a soft launch last year, but is now fully operational.
   In addition, CEVA announced today the launch of its new global Project Logistics Division, designed to transfer knowledge from its Energy sector to other sectors, with a particular focus on industrials, aerospace and mining.
   At the start of 2015, CEVA applied a new operating model to eliminate region-based structures globally and instead, move to a structure with 17 local geographic clusters of countries that feature uniform governance and business rules.
   “The benefits resulting from CEVA’s new operating model are accelerating,” CEVA CEO Xavier Urbain said in a statement. “As the Second Quarter illustrates, execution of our strategy is producing visible progress and increased profitability. We foresee significant upside potential by continuing this focus on operational excellence and efficiency for both our customers and ourselves. We continue to invest heavily in Business Development both on Key Accounts and Small and Medium-sized Enterprises to drive topline growth.”