UTi Worldwide posts higher 1Q attributable earnings

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UTi Worldwide Inc. on Thursday, June 7, reported revenues for its fiscal 2013 first quarter ended April 30 were $1,148.3 million, a decrease of 4.2 percent from $1,198.7 million. Net revenues (revenues minus purchased transportation costs) were $405.8 million, a decrease of 1.2 percent from $410.6 million.

Net income attributable to UTi Worldwide Inc. was $12.9 million compared to $8.7 million; adjusting for severance costs, adjusted net income attributable to UTi Worldwide Inc. was $14.1 million compared to $12.2 million, adjusted for severance, facility exit and other costs.

“Results in the fiscal 2013 first quarter were impacted by the weak industry-wide airfreight environment, which resulted in reduced tonnage in the quarter, particularly in the month of April,” said Eric Kirchner, chief executive officer of the Long Beach, Calif.-based company. “Offsetting this was an expansion in net revenue per unit, as well as an increase in ocean volumes compared to the first quarter of last year. Contract logistics and distribution revenues also grew, reflecting increased client volumes.”

Kirchner said currency had a negative impact on results, particularly from the weaker South African rand. “On an organic basis, excluding currency, net revenues actually grew 3.4 percent in the first quarter of fiscal 2013, while adjusted operating expenses increased at a slower rate,” he said. “Our new integrated system is now live in the Netherlands, and we are on track to begin deployment in other countries in the second quarter.”