American Shipper

CEVA’s 2nd quarter operating income up 66%

CEVA’s 2nd quarter operating income up 66%

CEVA Group, owners of CEVA Logistics and now Houston’s EGL Inc., Tuesday reported a second quarter operating income gain of 65.5 percent to 27.3 million euros ($38 million), up from 16.5 million euros last year.

   Revenue in the quarter improved 2.8 percent to 905 million euros ($1.24 billion).

   CEVA, a United Kingdom public limited company owned by affiliates of New York-based private equity firm Apollo Management, earlier this month completed the takeover of EGL for $2 billion. That deal followed last year’s acquisition of TNT Logistics for a similar price.

   With the addition of EGL — whose second quarter sales were up 8.1 percent to 656 million euros ($899 million) — CEVA said it’s now the world’s fourth-largest integrated supply chain management company.

   “We can see that the growth and profit indicators are positive for CEVA and the ability of the company to generate value is demonstrated by the results of the global focus on cash management,” said John Pattullo, CEVA’s new chief executive officer.

   “It is pleasing to see that EGL's results continue to show good progress which has not been unduly impacted by the sale process this year, and now that a platform has been established we will be able to address the potential of CEVA combined with EGL,” Pattullo said.