Logistics company UTi Worldwide Inc. (UTIW) on Thursday reported a 47 percent increase in profit for the first quarter, reflecting higher contract logistics and distribution activity, growth in ocean volumes, and lower operating expenses.
However, revenue for the quarter declined, primarily due to the impact of currency and weaker airfreight volumes.
Excluding purchased transportation costs, net revenues decreased 1.2 percent in the quarter, reflecting currency effects and lower airfreight tonnage that were partially offset by higher net revenue per unit of cargo in freight forwarding.
Eric Kirchner, chief executive officer of UTi Worldwide, said, "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. 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 grew, reflecting increased client volumes. However, currency had a negative impact on results, particularly from the weaker South African rand.
UTi Worldwide's first-quarter net income was $12.89 million or $0.12 per share, up from $8.74 million or $0.08 per share in the year-ago period.
Excluding items, adjusted earnings for the quarter rose to $14.05 million or $0.14 per share from $12.20 million or $0.12 per share in the prior-year quarter.
On average, 13 analysts polled by Thomson Reuters expected earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter declined 4.2 percent to $1.15 billion from $1.20 billion in the year-ago period. Analysts had a consensus estimate for the quarter of $1.23 billion.
Operating expenses for the quarter were $1.12 billion, down from $1.18 billion in the same period last year.
UTIW closed Wednesday's trading at $15.11, up $0.43 on a volume of 255,800 shares. In Thursday's pre-market, the stock is down $0.55 or 3.64 percent to $14.56.
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