CEVA’s revenue in the second quarter 2018 was $1,848m, up 7.3% year on year. Increased volume in existing contracts as well as new business implementations accounted for the growth despite certain contract losses. Revenue grew well across most sectors, particularly in industrials and healthcare but also in consumer/retail/e-commerce and automotive. Its EBITDA of $66m was 11.9% higher year on year.
Revenue in Freight Management increased by 8.1% in the second quarter 2018, year on year. CEVA had volume growth in Ocean, up 8.3% in the second quarter ahead of market growth. Air volumes were softer, as in Q1, mainly from the earlier loss of certain customers. Freight Management EBITDA increased by $7m year on year to $27m driven by improved yields in Air, increased productivity and progress in reducing losses in other FM activities. For the first half year 2018, revenue in Freight Management increased by 7.0% year on year and EBITDA was $42m, up $12m year on year.
Revenue in Contract Logistics increased by 6.8% in the second quarter 2018. The acceleration of revenue growth was driven by good volumes in existing contracts as well as the implementation of new business won previously. Contract Logistics EBITDA was stable at $39m. Improvements in productivity at many of the large, focus contracts were offset by issues in a limited number of operations in Italy and in the US. For the first half year 2018, revenue in Contract Logistics increased by 3.8% year on year in constant currency and EBITDA was $77m.
“We now have achieved seven consecutive quarters of strong top-line growth and stronger EBITDA” said Xavier Urbain, CEO of CEVA Logistics. “We continue to reduce our cost base, work on productivity and address our underperforming activities. “
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