HOOFDDORP, The Netherlands, Nov. 23 /PRNewswire-Asia/--

    -- Cash generation through operations at euro 226 million during the
       first nine months of 2009.
    -- Net working capital decreased by 76.2% and net debt decreased by 8.9%
       since 31 December 2008.
    -- During the first nine months of 2009, new business awards up 21%
       compared to the same period in 2008.
    -- Revenue is down by 15.7% for the nine months ended 30 September 2009.
    -- Sequential EBITDA was flat compared with Quarter Two in spite of usual
       seasonal weakness.

CEVA Logistics, a leading global supply chain management company, has today announced its Quarter Three and nine months, 2009 financial results.

"Following a difficult Quarter One in 2009, we delivered strong progress in Quarter Two. I am pleased to report that we have maintained this momentum in Quarter Three. We continue to build our capabilities and are making positive headway," commented John Pattullo, CEO, CEVA Logistics. "This progress will allow us to continue to grow our business and build on these results in 2010."

    Nine months ended 30 September 2009

    Key Financials at actual exchange rates

    euro millions                 Nine months   Nine months       Change
                                     2009           2008
    Revenue                         4,013          4,762           (749)
    EBITDA before specific
     items (Note 1)                   167            263            (96)



    Key Financials at 2008 constant exchange rates

    euro millions                  Nine months   Nine months       Change
                                     2009           2008
    Revenue                         4,018          4,762            (744)
    EBITDA before specific
     items (Note 1)                   164            263             (99)



    Three months ended 30 September 2009

    Key Financials at actual exchange rates

    euro millions                     Q3 2009       Q3 2008         Change
    Revenue                             1,372         1,666          (294)
    EBITDA before specific
     items (Note 1)                        68           102           (34)



    Key Financials at 2008 constant exchange rates

    euro millions                     Q3 2009       Q3 2008        Change
    Revenue                             1,385         1,666         (281)
    EBITDA before specific
     items (Note 1)                        68           102          (34)


    Note 1: EBITDA excludes the impact of specific items which are
            significant non-recurring items such as those incurred in the
            realisation of our cost containment programmes, other
            non-recurring charges and the profits realized on certain
            non-recurring transactions, such as our successful bond exchange.

The first nine months of 2009, have been an abnormal period for CEVA and others in the industry. Linked to the external economic situation our results have continued to be impacted by reduced volumes and a deflated airfreight market. The improvements we started to see in Quarter Two have continued. Although volumes in the airfreight industry have improved, the industry has been subjected to significant rate increases, which has offset these increases in volumes. We have also seen increases in ocean freight volumes and across our automotive, consumer and retail segments.

To the three months ended 30 September 2009, EBITDA before specific items was euro 68 million, only one million lower than the previous Quarter in spite of the usual summer holiday shutdown in Europe. Versus the comparative period in 2008, EBITDA is down by 33.3%.

We have continued to focus efforts on improving Net Working Capital (NWC). Since the inception of this program in December 2008, we have reduced our NWC by 76.2%. At the end of the first nine months, NWC stands at euro 30 million, and during the same time period cash generated from operations has increased to euro 226 million.

The cost savings program announced at the beginning of the year is well on track to generate the expected savings of over euro 100 million by the Year End. These initiatives have helped drive an improvement in liquidity (Note 2), which has increased to euro 225 million, at the end of the first nine months.

During the first nine months of 2009, our new business awards have continued at an enhanced rate and are up 21% compared to the first nine months of 2008. Our ongoing program of cross selling wins has amassed revenue of euro 264 million YTD with Q3 2009 contributing euro 71 million. Pleasingly, in 2008 we set an integration target of euro 500m of cross selling revenues by the end of 2010 and we have reached and surpassed this target already, with total cross selling wins now standing at euro 515 million.

During the Quarter we successfully concluded a debt exchange which has reduced our debt by euro 139 million and reduced annualized interest payments by euro 7 million on a pro forma basis. Subsequently, with the improvements in the capital markets we successfully completed a private placement offering of US$210 million of 11-5/8% senior secured notes due 2016. CEVA received net proceeds of approximately US$196 million from the offering and intends to use the proceeds for general corporate purposes.

We will announce our results for Quarter Four and the Full Year 2009 week commencing 08 March, 2010.

    Note 2: Liquidity is the sum of cash and headroom in secured central
            overdraft & guarantee facilities.

CEVA Making Business Flow

CEVA Logistics is a leading global supply chain management company. We provide end-to-end design, implementation and operational solutions in contract logistics and freight management to large and medium-sized national and multinational companies. CEVA employs circa 50,000 people and runs an extensive global network with facilities in over 100 countries. For the year ending 31 December 2008, the Group reported revenues of euro 6.3bn. For more information, please visit http://www.cevalogistics.com

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:

The statements included in this news release, and other statements that are not historical facts, may contain forward-looking statements. In addition to the assumptions specifically mentioned in the above paragraphs, there are a number of other factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, CEVA's substantial leverage, the actual effects of recent and future regulatory changes and technological developments, globalization, levels of spending in major economies, the economic downturn in Asia, Europe and the US, including the economic downturn in the automotive sector, levels of marketing and promotional expenditure, actions of competitors and joint venture partners, employee costs, future exchange and interest rates, changes in tax rates, unexpected costs of future business combinations or dispositions and other factors detailed in risk factors and elsewhere in CEVA's most recent annual and quarterly reports. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, is contained in the Company's annual and quarterly reports, available on the Company's website. Should one or more of these risks or uncertainties materialize or the consequences of such a development worsen, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. CEVA disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

    For further information

     Media enquiries:
     Email: Cevateam@hillandknowlton.com
     Tel:   +44-20-7413-3070

     Investor enquiries:
     Email: investors@cevalogistics.com

SOURCE CEVA Logistics

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