UTi Worldwide Inc. today, Sept. 3, reported financial results for its fiscal 2010 second quarter ended July 31 vs. 2009 results:
“While I am not satisfied with the quarter’s results, we are on track with our sales initiatives and transformation efforts, and they are expected to drive improvement in the future,” said Eric W. Kirchner, chief executive officer of Long Beach, Calif.-based UTi Worldwide. “Results in the quarter continued to be impacted by weak economic and industry conditions.”
Kirchner said the pace of volume declines moderated throughout the quarter, primarily due to seasonal factors. “It is too early to say that conditions have begun to improve, but the environment appears to be more stable than we have seen in some time, albeit at levels that are lower than the prior year,” he said. “Lower purchased transportation costs mitigated the impact of declining volumes, but more recently these costs have begun to increase, consistent with the seasonal build.”
Kirchner said the company anticipated the weak volume environment and proactively took steps to reduce annualized operating expenses, excluding purchased transportation costs, in fiscal 2010 by $50 million compared to the company’s fiscal 2009 fourth quarter adjusted operating expense level.