UTI reports lower sales, profits
The logistics company UTi reported lower profits and revenues in its first quarter ending April 30, saying they were adversely impacted by continued weak freight and logistics volumes, partially offset by lower transportation and operating costs.
Profit for the quarter was $9.8 million, 29 percent lower than the $13.5 million earned in the same period a year earlier.
Revenues were $768 million for the quarter, down 35 percent from the $1.18 billion in the same period last year.
Eric W. Kirchner, chief executive officer, said, “We continued to respond to the volume declines by reducing our operating costs, although these reductions did not fully offset the decrease in net revenue. We are intensifying our sales efforts to improve revenue growth, particularly in freight forwarding, without sacrificing profitability. These efforts may take some time, but we remain fully committed to our goal of achieving long-term growth and margin improvement.”
He said the decrease in revenues ” was due to the significant decline in forwarding and logistics volumes, currency fluctuations, and the exiting of businesses last year through the company’s earlier cost reduction plan.”