UTi Worldwide posts higher 2Q net income

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UTi Worldwide Inc. on Thursday, Sept. 1, announced revenues for its fiscal 2012 second quarter ended July 31 were $1,297.4 million, an increase of 13 percent from $1,151.1 million. Net revenues (revenues minus purchased transportation costs) were $443.4 million, an increase of 17 percent from $379.1 million. Net income was $22.9 million, while severance costs totaled $3.5 million; excluding these costs, adjusted net income was $25.3 million compared to $18.9 million.

“We are pleased to report solid results for the second quarter despite the macroeconomic headwinds and slowing freight environment,” said Eric Kirchner, chief executive officer of the Long Beach, Calif.-based company. Kirchner said net revenues were higher primarily due to currency effects, greater net revenue per unit of cargo in freight forwarding and increased activity in contract logistics and distribution. Ocean freight volumes increased in the second quarter, while airfreight volumes declined when compared to high levels last year, he said.

“We were pleased to see continued growth in many of our contract logistics operations, with new business wins in our Africa and Asia Pacific regions, as well as an improvement in our U.S. distribution business,” Kirchner said. “Operating expenses grew less than net revenues in the second quarter, and our efforts to control costs have helped productivity. As a result, our operating income increased over last year. We will continue to focus on growing the business and improving margins while we transform for the future.”