Business, Freight News, Logistics

Ceva to slash costs as profits decline

[ November 28, 2012   //   ]

Ceva Group is to start a cost-cutting and performance improvement programme after the Netherlands-based logistics company reported disappointing third-quarter profits on 28 November. Major issues have been identified with contract logistics operstions in southern Europe and the Middle East, while freight customers are switching from air to ocean in order to save money.

Earnings for the none months to 30 September tumbled 13.4% compared with the same period last year, to €206 million.

Chief executive officer Marvin Schlanger said: “This was a disappointing quarter in terms of our profit performance. We are addressing the decline in profitability with a comprehensive plan to reduce overhead costs and improved contract performance.” He hopes to slash around €100 million from the company’s bottom line.