UTi Worldwide posts higher 3Q earnings, revenues

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UTi Worldwide Inc. today, Dec. 4, reported financial results for its fiscal 2009 third quarter ended Oct. 31 vs. 2008 results:

  • Revenues increased three percent to $1,210.1 million from $1,179.7 million.
  • Net revenues increased five percent to $408.2 million from $388.9 million.
  • Operating income increased 11 percent to $53.8 million from $48.5 million.
  • Operating margin (operating income as a percentage of net revenue) improved to 13.2 percent compared to 12.5 percent.
  • Income from continuing operations was $35.8 million compared to $34.7 million.
  • Net income was $37.9 million compared to $34.9 million.
  • “Freight forwarding volumes deteriorated throughout the quarter, particularly in airfreight, where growth turned negative for the first time in many years,” said Roger I. MacFarlane, chief executive officer of Long Beach, Calif.-based UTi Worldwide. “While part of the airfreight weakness was market-related, the majority resulted from steps we took to eliminate low yielding business, consistent with our more disciplined approach to net revenue growth. Yields expanded, offsetting the volume decline and demonstrating the flexibility of our forwarding model.”

    MacFarlane said the company was pleased with the performance in its contract logistics and distribution segment, which produced improved operating margins in the quarter. “We continued to win new logistics business, and our surface distribution operations performed exceptionally well, though revenue gains in the quarter were offset by businesses that were shed through our previously announced cost reduction plan,” he said. “Looking forward, it is difficult to predict the extent to which weakening global economies will impact international trade. We believe our cost reduction plan and reorganization have put us on the right footing. We will continue to manage and build client relationships, keep a tight lid on costs and manage those areas we can control. We have been through difficult environments before, and I am confident we will successfully manage through this downturn as well.”