Growth continues at UTi Worldwide

Growth continues at UTi Worldwide    UTi Worldwide Inc., the Rancho Dominguez, Calif.-based forwarding and logistics company, continued to expand fast in the quarter ended July 31, while raising its net income 42 percent to $16.2 million.
   In its May-July financial quarter, the company’s revenues soared 49 percent to $540.4 million from $362 million in the year-earlier period. Revenue from air freight forwarding rose 45 percent to $243.4 million. Revenue from ocean freight forwarding went up 80 percent to $159.7 million. Contract logistics gross revenue increased 36 percent to $76.8 million. Revenue from customs brokerage climbed 6 percent to $18.3 million.
   Net revenues for the latest quarter rose 29 percent to $186.5 million.
   Operating income for the quarter increased 56 percent to $23.5 million. Operating margin, defined as operating income as a percentage of net revenues, rose to 12.6 percent in the latest quarter from 10.4 percent in the second fiscal quarter of last year.
   “Our focus on improved operating margins is evident in the results as each of our geographic regions made solid contributions to the growth in operating income for the second quarter,” said Roger I. MacFarlane, chief executive officer of UTi Worldwide.
   The Asia Pacific region increased its operating income 32 percent in the latest quarter to $8.3 million. The region made the largest contribution to UTi’s operating profit, ahead of Europe, Africa and the Americas.
   For the six-month period ended July 31, gross revenues rose 50 percent to $1 billion from $688.8 million for the same prior-year period. Net revenues went up 29 percent to $356.5 million. Operating income rose 62 percent to $42.2 million and net income increased 50 percent to $29 million.
   “We have enjoyed a healthy first half to the year, reflecting our team’s focus on meeting customer needs while not losing sight of our operating margin objectives,” MacFarlane said.
   He said UTi benefited from generally improved economic conditions, which it expects to continue for the remainder of the year.
   UTi is listed on the Nasdaq stock exchange.