CEVA Logistics Q2 losses narrow driven by strong air freight volumes
CEVA Logistics, the logistics subsidiary of France-based CMA CGM Group, demonstrated its resilience in the second quarter as it narrowed its losses, thus showing signs of recovery. Logistics net loss continued to recover during the second quarter, reaching $1 million, compared with a net loss of $ 32 million during the second quarter of 2019.
“The Covid-19 crisis has confirmed the relevance of our strategy of offering complementary shipping and logistics services, such as CEVA Logistics’ commercial airfreight and warehousing solutions,” the container shipping group said in a statement.
CEVA Logistics demonstrated its resilience during the past quarter, despite revenue being down 4.7 percent at $1.7 billion, also affected by adverse forex movements. EBITDA increased to $153 million, translating to 4.1 percent compared with the second quarter of 2019, despite the negative impact of the health crisis on its results estimated at $7 million. This limited impact underscored the success of the wide range of measures implemented to offset the negative impact of the public health crisis.
These results benefitted from the strong airfreight business thanks to air charters compensating the absence of regular capacity. Ground activities progressed further on their recovery. This performance offset the weakness of sea freight. The results of contract logistics were penalized during the quarter by the pandemic, which led to the closure of many sites. CEVA Logistics’ operating margins witnessed 78 percent growth to $40 million.