CEVA Logistics’ posted revenue of $1.72 billion in the second quarter (Q2) up 6.4 per cent in constant currency, on the $1.66 billion in 2016.
The forwarding and logistics company says adjusted earnings before interest taxes, depreciation and amortization (EBITDA) in Q2 was $70 million, up $9 million in constant currency versus the prior year.
In Q2, the freight management division achieved revenue growth of 8.8 per cent year-on-year (YOY) in constant currency with airfreight volumes up 15.6 per cent YOY notably on the Trans-Pacific and Intra-Asia trade lanes.
CEVA says the market situation “remains difficult” in view of rising carrier rates, and yields were maintained at relatively good levels.
For the first half of the year, revenue was $3.31 billion, up 5.8 per cent in constant currency on the $3.2 billion in the six months in 2016. Adjusted EBITDA was $124 million, up $11 million in constant currency versus the prior year.
CEVA says the improvement in profits was driven by growth and cost savings achieved from its ‘Excellence Program’, which it explains more than offset margin pressures in air and ocean and continuing cost reductions will support profits in the coming quarters.
Freight management EBITDA in Q2 was $20 million, up $2 million in constant currency.
CEVA chief executive officer, Xavier Urbain says: “Our Q2 is a further improvement on Q1, delivering revenue, profitability and cash flow improvements despite market headwinds. Our underlying trading was even stronger.
“The Excellence Program, with a relentless focus on impeccable execution and productivity is demonstrating a strong momentum and we shall see more impact in the coming quarters.
“We have made much progress in terms of cost reductions and cash flow and we keep winning new business. In view of these improvements, we confirm our expectation for robust results in 2017 in EBITDA and cash flow.”