CEVA shows signs of recovery
The company also reported a significant improvement in net working capital, and its strongest Contract Logistics performance in more than two years.
Revenue for the three months ended September 30, 2013 was $2,103 million, decreasing from $2,278 million from the corresponding period in 2012, driven primarily by lower Airfreight volumes.
Revenue in Freight Management declined by 13.3% against the same period in 2012 due to market conditions and decisions CEVA made regarding unprofitable contracts. Contract Logistics revenues of $1,159 million were steady in the quarter against $1,189 million in Q3 2012, with organic growth and new wins offsetting terminated contracts.
Adjusted EBITDA for the period was $80 million led by Contract Logistics, which increased 52% from the previous year, driven by a number of factors including improvement in the Americas; Freight Management declined 59% in comparison to Q3 2012, driven by weaker Airfreight volumes.
During the third quarter, CEVA continued investing in new businesses and announced new wins. These include an expanded relationship with Ford; a new three year deal with Michelin; an expanded contract with Avon; the addition of Rolls-Royce and Pigeon as part of a new green logistics center opened in Singapore; creation of a technology campus in Nashville, Tenn.; a new healthcare hub in Miami; and the opening of the company's second Center for Logistics Excellence, serving Asia Pacific. ■