CEVA's continues to see red in 2016 with loss of US$159m
NETHERLANDS-based third-party logistics provider CEVA Holdings LLC recorded a US$159 million loss in 2016, albeit an improvement on 2015's $195 million loss.
Total revenues in 2016 declined by 4.5 per cent year on year to $6.65 billion, which the company mainly attributed to decreases in first half air and ocean freight rates.
The freight management division, which includes international air, ocean, ground, customs brokerage, deferred air, and other value-added services, reported EBITDA before specific items of $65 million in 2016, up 1.6 per cent over 2015, reported American Shipper.
Freight management revenues decreased by 5.7 per cent year on year to $3 billion despite air and ocean freight volumes increasing 6.7 per cent and 4.1 per cent, respectively, due to "difficult peaks trading and a general increase in rates following the Hanjin bankruptcy," the company said.
EBITDA before special items in the company's contract logistics unit was down 13.5 per cent to $147 million for the year. Revenues in the division fell by 3.5 per cent year on year to $3.6 billion.
CEVA CEO Xavier Urbain said in a statement that he was confident the company in 2017 will achieve a "much better performance with our excellence programme leading to further cost savings," he said.
"Despite industry-wide challenges in 2016, our full year results demonstrate that we continue to make positive headway," Mr Urbain was quoted as saying.
"In this context, I am very pleased with the Q4 performance where CEVA demonstrated healthy growth in all business lines and visible impact of our excellence programme which supported us to deliver robust EBITDA in spite of the difficult peaks trading."