Cost Cuts Boost UTi Worldwide’s Profits

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Freight logistics company UTi Worldwide Inc. said its third-quarter net income beat Wall Street expectations, rising 8.6 percent as cost-cutting offset declining freight revenues.

Long Beach-based UTi on Thursday reported net income of $37.9 million (38 cents per share) compared with net income of $34.9 million (35 cents) a year ago. Revenue rose 2.6 percent to $1.21 billion, lower than analysts expected.

Analysts surveyed by Thomson Reuters on average expected profit of 35 cents per share, before charges, on revenue of $1.33 billion

The company said freight forwarding volumes fell throughout the quarter, especially in airfreight, which dropped for the first time in many years. Some of the reduction was market-related, the company said, but most came from its dumping of low-paying business. In addition, UTi sold the remainder of its art packing business during the quarter, accounting for 2 cents per share of net income.

UTI shares were down 36 cents, or 3 percent, to $11.02 in Friday morning trading on the Nasdaq.

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