CEVA to look for savings in tough market
Netherlands-based CEVA Logistics has introduced what it describes as “an even more rigorous approach to cost management” as it attempts to deliver on its financial goals in what remains a very challenging marketplace.
While the forwarder’s revenue rose by 5.5 percent year-on-year in the second quarter of 2012, earnings fell back compared to the April - June period of 2011. Weakness in Southern Europe and the Americas was held largely to blame for the setback.
According to CEO John Pattullo: “This was a difficult quarter, characterised by flat markets and customer caution.”
Transpacific volume and weakness in Southern Europe remain a concern, he noted, although Pattullo added that rising costs had been “partially offset by our efficiency programmes, global footprint and robust business model”.
Much of the revenue growth that CEVA achieved stemmed from a strong performance in ocean freight – especially out of Asia – with demand for air freight services lagging behind.