UTi: 2nd half ævolume growth to moderateÆ
UTi Worldwide Inc. reported second quarter net profit of $18.9 million compared to $11.8 million in the period the prior year.
Revenue for the fiscal quarter ending July 31 was $1.15 billion, 37 percent higher than $840.5 million in the second quarter or last year. The company said the increase was primarily due to higher air freight and ocean freight volumes.
“Our improved results were primarily driven by strong volumes and better operating margins,” said Eric W. Kirchner, chief executive officer. “Air freight and ocean freight volumes continued to grow faster than the market and were higher than volumes recorded in the second quarter two years ago, prior to the financial crisis.
“Results remain tempered by yield pressure due to continued high transportation rates, and we expect these rates to remain volatile on many trade lanes for the rest of the year. We are also expecting volume growth to moderate during the second half of the year due to a slowing global economy and more difficult comparisons to the prior year,' Kirchner said.
“We continue to be encouraged by improvements in our contract logistics and distribution business, which reported solid revenue growth and higher operating margins,” he said. “Client volumes improved in the quarter, particularly in retail and consumer markets, and we continue to manage our operations more efficiently. Our transformation initiatives remain on schedule and we are making good progress in all areas.”