CEVA Logistics, one of the world's leading supply chain management companies, has reported a first quarter 2012 adjusted EBITDA of EUR66 million (US$85.75 million), representing a seven per cent decrease compared to the same period a year earlier, which the company said reflects difficult market conditions.

For the three months ending March 31 revenue for the group rose by two per cent year on year to EUR1,712 million driven by strong performance in Contract Logistics and Ocean Freight.

Contract Logistics revenues increased three per cent driven the Automotive sector, that performed particularly well in Asia and North America, as well as strong year on year growth in the Industrial sector, a company statement said.

In Freight Management, where revenues were flat overall, Ocean Freight performed well following significant management focus in 2011, while disappointing Airfreight performance mirrored a difficult quarter experienced by the broader airfreight market.

It said a continuing focus on structural change programmes and tight control of costs helped protect margins.

CEO John Pattullo said: "Even in these more difficult markets, CEVA continues to make progress. Our Ocean business performed well and we continued to make solid gains in Contract Logistics driven by excellent performance from the Automotive and Industrial sectors. The Airfreight market continues to be challenging, with CEVA's performance mirroring that of many of our competitors."

On a brighter note, the group noted that new first quarter business wins of EUR504 million exceeded its target.

It also said that on February 1, the CEVA group, together with its parent CEVA Investments Limited (CIL), successfully completed a transformational financing, eliminating over EUR500 million of group indebtedness and over EUR350 million of CIL securities.

After quarter end, on May 2, the group refinanced its synthetic letter of credit facility due in 2013 by increasing its existing tranche B term loan due in 2016 by US$150 million and using the proceeds to pay down revolving facilities, which will be available to issue letters of credit. As a result of these transactions, the group said it has strengthened the company's balance sheet and lowered interest costs.