UTi reports 31 percent gain in net income
The forwarding and logistics services company UTi Worldwide, citing gains from it 'NextLeap' strategy of customized services, said Monday it had a 31 percent gain in net income during the third quarter.
California-based UTi reported record levels of gross and net revenues, operating income, and net income during the quarter ending Oct. 31.
Revenue rose 23 percent to $740.9 million, and net revenue was up 25 percent to $253.2 million. UTi said the increased revenues were driven by 'strong levels of organic growth across all regions and service lines.'
Operating income grew 51 percent to $40.3 million, with net income up 31 percent to $26.1 million.
'We believe we are continuing to benefit from the pursuit of our NextLeap goal of providing customized solutions for our clients in global integrated logistics, with year-over-year growth achieved in all our service categories,' said Roger MacFarlane, UTi chief executive officer. 'Air freight and ocean freight forwarding net revenues grew 11 percent and 23 percent, respectively.'
He added, however, that high fuel surcharges, which are reflected in gross revenues, restrained air freight and ocean freight yields.
Contract logistics net revenue continued to gain momentum, he said as a result of both organic growth and acquisitions in that service line.