CEVA posts solid performance in Q3 but still records a loss

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CEVA Holdings has reported a solid performance in the third quarter (Q3) of this year as it saw air cargo volumes grow by a double-digit figure.

The logistics firm’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter ending 30 September was $75 million, up 19 per cent versus Q2 and flat versus the prior year in constant currency.

However it remains in the red and its net loss for the period stood at $41 million, but down on the loss of $58 million for the same quarter last year.

In Q3 its Freight Management division’s EBITDA was up 20.8 per cent versus the prior year in constant currency, driven by volume growth and for its Contract Logistics division EBITDA growth was 15.2 per cent versus Q2 through margin increase.

Revenue was $1,679 million in Q3, up 0.9 per cent in constant currency, which CEVA says was driven by strong volume growth partially offset by declines in rates in Freight Management and good revenue growth in Contract Logistics.

In Q3, air volumes rose 10.6 per cent against a soft market, which CEVA says can be attributed to a mix of new business and an increasing share of wallet with existing customers in numerous sectors and strong development in selected trade lanes.

Revenue was down 1.4 per cent in constant currency, reflecting unstable rates, EBITDA improved to $27 million, representing an increase of $5 million in constant currency.

CEVA chief executive officer, Xavier Urbain says: “CEVA’s top line performance continued in Q3. 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 per cent and ocean of 4.4 per cent 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.

“I am confident that the actions we continue to implement will drive robust performance in both our revenue and margins in 2017.”