CEVA Group Sees Markets Improving

CEVA Group, the U.K.-based provider of logistics services, said there have been improvements across all of its markets during the second quarter of 2009, compared with the first quarter, despite the fact overall transaction volumes have remained low.

Based on current trends, CEVA currently projects its 2009 second quarter revenue at $1.9 billion dollars and its EBITDA before specific items to be between $95 million and $101 million. During the first quarter of 2009, CEVA had revenue of $1.84 billion and EBITDA of $42.6 million. CEVA will formally announce its second-quarter and half-year 2009 results to the market on August 12.

CEVA also said it expects to have total debt net of cash of $3.52 billion at the end of the second quarter of 2009, compared with $3.58 billion on March 31. The company estimates that approximately $135 million of this decline will be due to the weakening of the U.S. dollar.

On July 22, CEVA successfully completed the previously-announced exchange of its new 12 percent second-priority secured notes, due 2014, for certain outstanding notes and senior unsecured loans. This transaction reduced CEVA's outstanding debt and its annual interest expense. Pro forma for this exchange, total debt net of cash, would have been $3.34 billion at the end of the second quarter of 2009.

Source: JOC