CEVA Group Plc Announces 2009 Full Year Results
LONDON, March 9 /PRNewswire-Asia/ --
* Revenue for the Full Year euro 5.5 billion
* Net debt decreased by 7% to euro 2.4 billion for the year end
* New business wins increased by 10% on 2008
* Cost savings programs 25% ahead of goal at euro 125 million
* Net Working Capital reductions have continued and ended the year at
euro 1 million (2008: euro 126 million).
"Following a challenging first quarter, we delivered solid and progressive results across the remainder of 2009 and, overall, we believe that CEVA responded well to a different and demanding trading environment, and is well positioned for the future," John Pattullo, CEO, CEVA Logistics.
CEVA Logistics, one of the world's leading supply chain companies, has today announced its Full Year 2009 Results. The Group has announced Full Year revenues of euro 5.5 billion (2008: euro 6.3 billion) and is continuing to see steady improvements across the business as the global economy improves.
Key Financials (actual exchange rates)
Millions (euro) 2009 2008 Growth
Revenue 5,494 6,329 (13.2%)
EBITDA before specific items (Note 1) 233 326 (28.5%)
The global logistics markets fell precipitously in November 2008 and although there was some recovery later in 2009, the overall market declined by about 12% year-on-year. This has had an obvious impact on the business with reduced volumes. In the last quarter we continued to recover volumes and revenues; however as freight carriers removed capacity and rates increased, we saw price increases that we were unable to pass through immediately to customers. We expect to recover these margins in 2010.
One of our key sectors is automotive. Volumes in this segment continued to rally through the year including the fourth quarter. We remain focused on our strategy of increasing our share in other sectors to broaden our markets served and are pleased to report increases in our technology and industrial businesses, with particular growth in the fourth quarter among technology customers. In 2009, our new business wins continued at an enhanced rate and are up 10% compared to 2008. Our ongoing program of cross selling wins generated revenue of over euro 550 million in 2009.
We set a challenging target of removing over euro 100 million of cost from the business in 2009 by implementing savings at all levels. We have exceeded this by 25% (euro 125 million) at the Year End. Those actions have helped compensate the volume reduction during the year and we expect many of those costs reductions to be sustainable.
Even in a difficult trading period we have delivered positive cash flow from the business. In particular, our management and ongoing focus on Working Capital reductions over the course of the year have continued to improve and we ended the year at euro 1 million (2008: euro 126 million).
The Company has announced the commencement of a cash tender offer and consent solicitation with respect to its outstanding euro 120 million and $127 million 12% Second-Priority Senior Secured Notes due 2014 and its outstanding $400 million 10% Second-Priority Senior Secured Notes due 2014. The purpose of the tender offer and consent solicitation is to extend the maturities of CEVA's debt. This announcement shall not constitute an offer to purchase or a solicitation to sell any securities. The tender offer and consent solicitation is being made through, and subject to, the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated 24 February 2010 and related materials.
In a challenging year, we delivered solid and progressive results and, overall, we believe that CEVA responded well to a different and demanding trading environment, and is well positioned for the future.
Note 1: EBITDA excludes the impact of specific items which are significant
items such as restructuring and integration costs, rebranding
costs and certain legal expenses.
CEVA Making Business Flow
CEVA Logistics provides world class supply chain solutions for large and medium-size national and multinational companies across the globe. As an industry leader, CEVA offers customers complete supply chain design and implementation in contract logistics and freight management, alone or in combination. CEVA's integrated global network has facilities in over 170 countries and more than 46,000 employees; all dedicated to delivering consistently excellent operations and supply chain solutions. For the year ending 31 December 2009, the Group reported revenues of euro 5.5 billion. 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, the process of combining EGL and CEVA, 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 most recent Annual 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 more information contact:
CEVA Group Marketing & Communications
Rebecca Salt
Tel: +44-7795-314010
[email protected]
SOURCE CEVA Logistics
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