UTi Worldwide profit up 3 percent
UTi Worldwide Inc. said its fiscal first quarter profit improved 3 percent to $10.1 million, compared to the year-earlier quarter.
Revenue for the quarter ending April 30 was $1.1 billion, up 37 percent from the same period a year earlier, and net revenue (revenues minus purchased transportation costs) rose 18 percent to $365.7 million.
“Air freight and ocean freight volumes grew significantly in the first quarter in a stronger market than we saw in the same period last year,' said Eric W. Kirchner, chief executive officer. 'Both air and ocean volumes in the first quarter were very close to those seen in the same quarter two years ago, before the market downturn.
“Although the exceptional volume growth drove a substantial increase in revenue, our freight forwarding results were constrained by yield pressure caused by very tight capacity and higher transportation rates. We are adjusting our pricing to reflect these higher rates; yet rates continue to be volatile on many trade lanes. It is difficult to predict when yields will stabilize, as it will depend on the future rate and capacity environment and our continued ability to adjust pricing.”
Kirchner said the company was particularly pleased with the performance of its contract logistics and distribution business, which he said reported good revenue growth and margin improvement. Client volumes improved in the quarter, particularly in retail and consumer markets.