UTi Worldwide posts lower 1Q net income, higher revenue

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UTi Worldwide Inc. today, June 5, reported financial results for its fiscal 2009 first quarter ended April 30:

  • Revenues increased 26 percent to $1,188.1 million from $944.7 million;
  • Net revenues (revenues minus freight consolidation costs) increased 17 percent to $391.8 million from $336.0 million; and
  • Net income was $13.5 million compared to $18.1 million. Excluding after-tax restructuring charges of $4.4 million, adjusted net income in the 2009 fiscal first quarter was $17.9 million.
  • “Revenues continued to outpace the market primarily due to solid organic growth,” said Roger I. MacFarlane, chief executive officer of Long Beach, Calif.-based UTi Worldwide. “Volumes in our freight forwarding operations were strong, and we continued to add new logistics business. The skill and dedication of our people, along with the breadth of our service offering, have enabled us to gain market share in a tough economic environment.”

    MacFarlane said a protracted economic downturn could impede anticipated growth for the company. “As expected, all actions under our cost-reduction plan were initiated by the end of the first quarter,” he said. “While we are already seeing some benefits from these actions, the majority of anticipated improvement is still expected in the second half of fiscal 2009.”

    Revenue gains for the fiscal 2009 first quarter were due to organic growth in all geographic regions, as well as contributions from acquisitions made by the company since May 1, 2007, and, to a lesser extent, to currency fluctuations. The company’s adjusted net revenues, excluding acquisitions, increased 13 percent in the fiscal 2009 first quarter compared to the same period last year.