CMA CGM's Turnaround Plan for CEVA

Shailaja A. Lakshmi
Wednesday, May 29, 2019

Following the friendly takeover bid for the contract logistics and freight management solutions provider CEVA Logistics, the French container transportation and shipping giant CMA CGM Group now holds 99.4% of CEVA's equity.

The shipping Group is resolutely committed to CEVA's financial recovery, and has already taken major structural decisions paving the way for CEVA’s rapid return to profitability.

Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, was elected Chairman of the Board of Directors of CEVA Logistics at the Annual General Shareholders Meeting held on April 29th, 2019.

A new, stronger governance structure has been put in place. Nicolas Sartini becomes Chief Executive Officer as of June 1st, 2019, tasked with implementing CEVA's turnaround plan and returning it to profitability.

A CEVA operations center will be set up in Marseilles, bringing together CEVA's management teams and support functions, for a total of 200 employees (new jobs and transfers).

Located near the Group's head office, it will strengthen the operational management and control of CEVA.

First quarter revenue of CMA CGM was up by nearly 37% year-on-year, to USD 7.409 billion. Coming on top of the Group’s 5.5% organic growth, the impact of integrating CEVA amounted to USD 1.7 billion.

Adjusted EBITDA came to USD 779 million for Q1, of which USD 423 million corresponds to the impact of IFRS 16 and USD 144 million to the contribution from CEVA.

Categories: People & Company News Logistics

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