Ceva recorded a loss in the first quarter of the year despite an improvement in revenues and airfreight volumes.
The freight forwarder saw first-quarter revenues increase by 1.9% year on year to $1.6n, operating income was up to $8m from $4m a year earlier but it registered a net loss of $57m compared with a $3m profit last year.
Meanwhile, airfreight volumes improved by nine percent year on year, ahead of estimated market growth of six percent.
The forwarder said that the main driver for the loss was mainly down to the recognition of deferred tax assets in the first three month of last year, while none have been recognised this year.
The company was happy with the improvement in operating performance.
Ceva chief executive Xavier Urbain said: “2017 has begun positively, with volume, revenue and [operating] profit growth”
“Our top-line performance demonstrates the strength of our service offerings and solutions, of our relationships and the confidence customers place in us.
“We have recently achieved a number of important new business wins, notably in contract logistics, which we expect to have positive effects in the coming months.”
“Our operational excellence programme to simplify and standardise our processes is having a visible impact and is delivering significant cost savings.
“We are also making good progress in improving our key contracts and markets, in particular the US. The renewal of the ANJI-Ceva joint venture in China and recent refinancing transactions are equally strong endorsements of Ceva’s direction. We are well on track for a stronger year.”
Ceva, like other forwarders that have reported first quarter performance, said that freight revenue margins came under pressure in line with price increases from carriers.
Despite this, the forwarder said it was able to maintain earnings before interest, tax, depreciation and ammortisation through productivity improvements and cost savings.
Yesterday, DSV reported airfreight volume growth of 20% during the first quarter – on the back of its UTi acquisition – Panalpina was up 8% and Kuehne+Nagel 15.5%.
