UTi Worldwide reports Q4 profit

UTi Worldwide reports Q4 profit    UTi Worldwide Inc. reported fourth quarter net profit of $1.5 million compared to a net loss of $89.8 million the prior year period.
   Revenue increased 11 percent to $991.5 million for the recent quarter.
   For the full year, the Long Beach-based forwarder and logistics company had net profit of $41.1 million compared to a loss of $4.6 million the prior year.
The increase in fourth quarter revenue was a reversal from the trend earlier in the year. Revenue was $3.57 billion for the year compared to $4.54 billion in 2008.
   “Financial results in the fourth quarter were severely affected by sharply higher transportation costs and the associated reduction in yields, which more than offset a significant increase in volumes,' said Eric W. Kirchner, chief executive officer. 'The industry experienced a longer and more pronounced peak season than we have seen in several years, leading to an unanticipated surge in volumes in a market with limited capacity.
   “As a result, transportation rates continued to climb throughout the fourth quarter. Yield compression was particularly acute in January, as volumes remained strong and carrier rates moved higher. Because of the lag inherent in passing these rising costs onto clients, we have not yet seen meaningful yield improvement in the first quarter of fiscal 2011. The circumstances leading to the industry-wide yield contraction are expected to stabilize over time and this will allow us to pass through higher prevailing transportation rates to clients,” he said.