CEVA quarterly pre-tax profit falls 13.6pc, but revenue increases 5.5pc

CEVA Logistics, the big Dutch non-asset based supply chain management company, suffered a 13.6 per cent second quarter decline in pre-tax profit to GBP70 million, drawn on revenues of GBP1.8 billion, up 5.5 per cent.

First half pre-tax profit shrank 10.5 per cent to GBP136 million (US$212 million), drawn on revenues of GBP3.5 billion, up 3.5 per cent.

Second quarter freight management (FM) revenues increased nine per cent, while contract logistics rose three per cent.

"Progress in FM was largely due to strong growth in our ocean freight business, particularly out of Asia," said the company statement, adding that the gain in FM was offset by declines in contract logistics, which was affected by the global economic downturn, especially in southern Europe.

The company said certain one-off items, mainly in the prior year quarter, accounted for almost one third of the decline. But CEVA experienced strong performance in Asia Pacific contract logistics.

"This was a difficult quarter, characterised by flat markets and customer caution, partially offset by our efficiency programmes, global footprint and robust business model," said CEO John Pattullo.

"Transpacific volume and weakness in southern Europe remain a concern. As a result, we have introduced an even more rigorous approach to cost management to support delivery of our strategic plan," Mr Pattullo said.