Ceva’s operating profit showed a 57 per cent increase in the fourth quarter driven by a strong performance from the Contract Logistics division.
Adjusted EBITDA rose from $49m in the fourth quarter of 2012 to $77m on sales down 9.4 per cent to $2.2bn.
“The steps taken in 2013 have positioned Ceva for a future where we can invest and grow the business to serve our customers,” said Xavier Urbain, who took over as the company’s chief executive in January.
“The results of the team’s efforts in addressing underperforming contracts in our Contract Logistics business significantly increased the company’s adjusted EBITDA compared to a year ago.We are also seeing evidence of improvement in our Freight Management business as actions to strengthen our Freight Management organisation gain traction in the marketplace and with our customers.
For the full year, the company reported an 8.3 decline in sales $8.5 bn, mainly as a result of weaker Freight Management volumes.
Freight Management revenue declining 12 per cent largely due to lower Airfreight volumes out of Asia and disruption arising from the recapitalization in the first half.
In Contract Logistics, adjusted EBITDA increased 23 per cent on the year, benefiting from the company’s work to address underperforming contracts.
Previously announced actions reduced revenue in Contract Logistics 2.6 per cent (adjusted for disposals).
The company benefited from the recapitalisation of its balance sheet in the first half of the year, which reduced net debt to $1.6bn, compared to $3.3bn for 2012. As a result, annual cash interest costs are now roughly half the level of a year ago.
Cash generated from operations increased 59.6 per cent to $292 million and net working capital improved 112.5 per cent.
Urbain said: “Ceva is well positioned to take full advantage of recovering markets around the world.I am privileged to have the opportunity to lead our talented and dedicated teams through the next, exciting stage in the development of our business, one which will be focused on growing the business by delivering superior results to our customers globally.”
