UTi Worldwide posts better-than-expected Q2 results

US – basedlogitics company, UTi Worldwide Inc posted better-than-expected quarterly results, helped by higher volumes as the freight and trucking industry slowly recovers from one of its severest downturns in decades. Air and ocean freight revenue, which together comprise three quarters of the company’s total revenue, rose 55 per cent and 48 per cent, respectively, […]


US – basedlogitics company, UTi Worldwide Inc posted better-than-expected quarterly results, helped by higher volumes as the freight and trucking industry slowly recovers from one of its severest downturns in decades. Air and ocean freight revenue, which together comprise three quarters of the company’s total revenue, rose 55 per cent and 48 per cent, respectively, in the second quarter ended 31 July. “Air freight and ocean freight volumes continued to grow faster than the market and were higher than volumes recorded in the second quarter two years ago, prior to the financial crisis,” said chief executive Eric Kirchner said in a statement. “Our improved results were primarily driven by strong volumes and better operating margins.” Net income attributable to UTi Worldwide Inc. was US$18.9 million compared to $11.8 million in the same period a year earlier. Revenues were $1.15 billion, an increase of 37 per cent from $840.5 million in the year-earlier period. UTi also said it was expecting volume growth to moderate during the second half of the year, citing a slowing global economy. “Results remain tempered by yield pressure due to continued high transportation rates, and we expect these rates to remain volatile on many trade lanes for the rest of the year. We are also expecting volume growth to moderate during the second half of the year due to a slowing global economy and more difficult comparisons to the prior year,” added Kirchner.