Profits flat at CEVA as market share grows

Despite a general rise in the cargo business in the third quarter of 2016 in many regions, Netherlands-based forwarder CEVA reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of US$75 million, down 6.3 percent compared with $80 million in the third quarter of 2015. In constant currency, however, CEVA’s Q3 results were flat at $80 million for Q3 2016. Revenue for Q3 was $1.68 billion, but was adjusted up to $1.72 billion in constant currency, registering a 0.9 percent revenue increase over the previous year’s $1.7 billion.

CEVA noted in its quarterly results that Q3’s adjusted EBITDA of $75 million was up 19.0 percent, sequentially, due to market share gains and cost reductions.

In Q3, air cargo volumes rose 10.6 percent, year-over-year, despite what the forwarder called “a soft market.” This was attributed to a “mix of new business and an increasing share of wallet with existing customers in numerous sectors and strong development in selected trade lanes.”

Ocean volumes grew at 4.4 percent, y-o-y, even as maritime shipping has taken a beating. This was reflected in the division’s revenue, down 1.4 percent in constant currency. CEVA said that, despite unstable rates, EBITDA improved to $27 million, a y-o-y increase of $5 million in constant currency.

Headroom as of Sept. 30 was $524 million, an increase versus the $517 million in the prior year.