Bruce Barnard | Mar 03, 2010 9:00AM EST
CEVA Logistics reported double digit declines in 2009 revenue and profit compared with the previous year, but all business units are now benefiting from the global economic upturn, the international supply chain management company said.
The Netherlands-based firm's earnings before interest, tax, depreciation and amortization slumped 28.5 percent to $319 million.
The earnings exclude specific significant items such as restructuring and integration costs, rebranding costs and certain legal expenses, CEVA said.
CEVA's revenue shrunk 13.2 percent to $7.53 billion from $8.67 billion in 2008, but the company said it is now "continuing to see steady improvements across the business as the global economy improves."
The company achieved cost savings of $171 million, some 25 percent ahead of target.
"Following a challenging first quarter, we delivered solid and progressive results across the remainder of 2009, and overall we believe that CEVA responded well to a different and demanding trading environment and is well positioned for the future," said Chief Executive Officer John Pattullo.
The global logistics market fell "precipitously" in November 2008 and although there was some recovery later in 2009, the overall market declined by about 12 percent year-on-year, CEVA said.
The company said it continued to recover volume and revenue in the final quarter of 2009.
" However, as freight carriers removed capacity and [freight] rates increased, we saw price increases that we were unable to pass through immediately to customers," CEVA said.
"We expect to recover these margins in 2010," the company said in a statement.
The company said its key automotive business rallied through 2009 including the fourth quarter, and its focus on increasing market shares in other sectors to broaden its coverage resulted in increased technology and industrial contracts.
New business wins continued at an enhanced rate in 2009 and increased 10 percent from 2008.
CEVA, the world's fourth largest pure logistics company, was created in 2007 by the merger of two firms acquired by U.S. private equity firm Apollo Management -- the former TNT Logistics of the Netherlands and EGL, a Houston-based freight forwarder.
CEVA has over 46,000 employees and facilities in more than 170 countries.
Contact Bruce Barnard at brucebarnard47@hotmail.com.