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CEVA profit down 33pc to US$60 million as revenue falls 9.3pc
DUTCH logistics giant CEVA Holdings posted a 33 per cent third quarter year-on-year decline in operating profit to US$60 million, drawn on revenues of $1.92 billion, down 9.3 per cent.
"Our focus over the course of 2014 has been very deliberate: We have rebuilt the management team with executive leaders who know the industry," said CEVA chief executive Xavier Urbain.
"We are announcing the transformation of our operating model to increase the velocity of our business by adopting a local, rather than region-based, operating model," he said.
Starting January 1, CEVA said it will eliminate its region-based structures, opting instead for 17 clusters of countries with standardised governance and business rules for all.
"Clusters may consist of a single large country, such as China, or may consist of several countries in close proximity," the company statement said.
"This is a transformative announcement for CEVA," Mr Urbain said. "The new operating model supports our objective to be the most professional logistics company."
This came as the company announced that sales and operating profits rose between the second and third quarters. EBITDA at US$64 million was up 6.7 per cent on revenue up 0.7 per cent to $1.99 billion.
In the third quarter air freight and ocean freight volumes rose five per cent and 11 per cent, respectively, over prior-year levels. However, tightening air freight capacity on transpacific lanes resulted in margin pressures that offset the volume gains.
CEVA's third main product line, contract logistics, reported strong results in the US, offset by sub par volumes in the Asia Pacific automotive market.
Total new business wins year to date were up 20 per cent year on year, with contract logistics wins increasing 19 per cent and freight management wins rising 20 per cent on-year.
"Our focus over the course of 2014 has been very deliberate: We have rebuilt the management team with executive leaders who know the industry," said CEVA chief executive Xavier Urbain.
"We are announcing the transformation of our operating model to increase the velocity of our business by adopting a local, rather than region-based, operating model," he said.
Starting January 1, CEVA said it will eliminate its region-based structures, opting instead for 17 clusters of countries with standardised governance and business rules for all.
"Clusters may consist of a single large country, such as China, or may consist of several countries in close proximity," the company statement said.
"This is a transformative announcement for CEVA," Mr Urbain said. "The new operating model supports our objective to be the most professional logistics company."
This came as the company announced that sales and operating profits rose between the second and third quarters. EBITDA at US$64 million was up 6.7 per cent on revenue up 0.7 per cent to $1.99 billion.
In the third quarter air freight and ocean freight volumes rose five per cent and 11 per cent, respectively, over prior-year levels. However, tightening air freight capacity on transpacific lanes resulted in margin pressures that offset the volume gains.
CEVA's third main product line, contract logistics, reported strong results in the US, offset by sub par volumes in the Asia Pacific automotive market.
Total new business wins year to date were up 20 per cent year on year, with contract logistics wins increasing 19 per cent and freight management wins rising 20 per cent on-year.
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