UTi Worldwide Q1 Profit Up 47% Despite Lower Revenues

UTi Worldwide Posts Q4 Loss - Quick Facts

Trade UTIW now with

6/7/2012 8:36 AM ET

Logistics company UTi Worldwide Inc. (UTIW: Quote) 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.

To receive FREE breaking news email alerts for UTI Worldwide Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

More Breaking News

<<Previous 73 Articles Next>>

Editors Pick

China Manufacturing Contracts As New Orders Slump

China's manufacturing sector contracted for the first time in seven months in May amid poor demand, fueling concerns that the weakness in the economy may persist for some more time. The headline purchasing managers' index, an indicator of the health of the factory sector, fell to a seven-month low of 49.6 in May from 50.4 in April. Readings below 50 indicate contraction of the sector.

HP Profit Falls Yet Tops Estimates

Hewlett-Packard Co. said Wednesday after the markets closed that its second quarter profit fell 32% from last year, hurt by lower revenue and weaker margins amid a slump in PC sales. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations, but its quarterly revenue fell short of analysts' forecast.

Worries About Fed Tapering Lead To Sell-Off On Wall Street - U.S. Commentary

Stocks showed a substantial downturn over the course of the trading day on Wednesday after seeing some strength in morning trading. Renewed worries about the Federal Reserve tapering its asset purchase program contributed to the sharp pullback by the markets. The major averages climbed off their worst levels going into the close but still ended the day firmly negative.