Ceva posts €1.7bn Q2 profit

The Netherlands-based worldwide forwarder and logistics provider Ceva Group Plc has announced its results for the second quarter of 2008. Management stated the company continued to see "increasing growth momentum" although it was affected by weakening currency rates in two of its key markets – the UK and the US.

The company reported revenue of €1.7bn (Dh9.2bn) for the quarter, helped by a strong performance in Contract Logistics and Freight Forwarding. At 2007 exchange rates, revenue grew by 9.4 per cent over the same quarter of the previous year on a proforma basis (ie assuming its acquisition of US freight forwarder EGL was on January 1, 2007). However, actual growth, taking into account currency fluctuations, was 2.5 per cent.

At 2007 exchange rates, Q2 operating profit (Ebitda) failed to keep pace with sales growth, improving by just 3.2 per cent to €96m, a margin of 5.6 per cent (down from six per cent).

Excluding the effect of changes in foreign currency, revenue from Contract Logistics grew strongly in Asia Pacific, Italy, Turkey and within the Northern European geographies of the UK and Central and Eastern Europe as a result of higher volumes and contract wins. Revenue from North America was adversely affected by the downturn in economic conditions and contract terminations in the prior year.

Contract Logistics' Ebitda decreased to €56million in the 2008 quarter from €59m in 2007.