UTI WORLDWIDE POSTS FISCAL YEAR PROFIT DESPITE 4TH-QUARTER DIP
UTi Worldwide Inc. said Wednesday it's net profit for the fiscal year ended Jan. 31 improved 3.8 percent to $19.2 million, despite a dip in fourth-quarter earnings.
Operating income for the fiscal year ended Jan. 31 was $29.7 million, up 9 percent. Revenue was $889.8 million, up 3 percent, while net revenue improved about 1 percent to $304.6 million. Results were impacted by the global economic slowdown and weaning foreign exchange rates, particularly for the South Africa rand, the company said.
Fourth-quarter net income was $3.8 million, down from $6.5 million for the year-earlier period. Operating income increased 11 percent to $6.4 million while revenue was flat, at about $219.8 million. Net revenues dipped to $71.8 million, from $77.9 million in the year-earlier period.
During the quarter, the company acquired Gropo SLI, a warehousing and logistics services provider based in Madrid, Spain. The acquisitions expanded UTi to about 3 million square feet of warehouse space in Europe.
The company saw strong operating performances in South Africa, despite the decline in the South African rand, and in Asia Pacific. UTi's business in Asia Pacific saw a 20-percent growth in net revenues and 29 percent increase in operating income for the fourth quarter.
The Rancho Dominguez, Calif.-based company said it was encourages by strengthening ocean freight business in the first quarter of 2002, but 'we are not yet seeing signs of sustained improvement in the air-freight business, particularly in the U.S. Therefore we remain cautious.'