CEVA Logistics boosted third quarter profit by 5.8 percent to $125.6 million on a 1.2 percent gain in revenue to $2.54 billion, as the Netherlands-based logistics company reaped the benefits of lower costs and higher productivity.
“The actions we have taken over the past 18 months to reduce costs and improve our operational efficiency have resulted in better margins and increased earnings [before interest, tax, depreciation and amortization] in markets that have become tougher in recent months,” said CEVA CEO John Pattullo.
Nine-month profit was up 17.2 percent at $328.5 million while revenue grew 2.1 percent to $7.1 billion.
Contract logistics continued to perform strongly in the third quarter with revenue growing 2.5 percent year-on-year, but the freight management unit suffered from lower rates and volumes, particularly on trans-Pacific air cargo lanes.
By contrast, the ocean shipping unit continued to grow with increased volume boosting CEVA’s market share.
The company expanded its less-than-container-load business during the quarter with the addition of a Hamburg-New York service, “which is the first of many new LCL solutions scheduled to launch in the fourth quarter.”
CEVA said it has 120 staff in Thailand assisting its technology and automotive customers to re-engineer their supply chains, which have been hit by floods across the nation.
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