UTi Worldwide reports record performance in last quarter
UTi Worldwide Inc. Thursday reported record revenue, operating income and net income for the three months ended July 31.
Operating income for the second quarter of fiscal 2006 increased 43 percent to $33.6 million from $23.5 million in the prior-year period. Net income grew 38 percent to $22.3 million compared with $16.2 million for the prior-year second quarter.
Revenue increased 27 percent to $686.2 million for the second quarter of fiscal 2006, from $540.4 million in the year-earlier period, the company said in a statement. Net revenue increased 28 percent to $238.3 million from $186.5 million in the fiscal 2005 second quarter.
The increases were principally driven by strong levels of organic growth across all regions and service lines.
Air freight forwarding net revenues grew 18 percent, while improved ocean freight volumes delivered a 17 percent increase in ocean freight forwarding net revenues. Contract logistics net revenues improved 53 percent, driven by new customers and the contribution from Canada-based Unigistix Inc., which UTi acquired in October 2004. As fuel prices and surcharges continue to rise and are passed through to customers as part of gross revenues, it will constrain improvement in air freight and ocean freight yields, the company advised.
UTi Worldwide is an international, non-asset-based global integrated logistics company providing air and ocean freight forwarding, contract logistics, customs brokerage and other supply chain management services. The company is based in Rancho Dominguez, Calif.