Economy Hurts UTi’s Quarter

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Long Beach logistics company UTi Worldwide Inc. on Thursday reported lower-than-expected second quarter results, hurt by continued declines in freight movement due to the economic slowdown.

UTi reported net income of $11.8 million (12 cents a share) for the quarter ended July 31, compared with net income of $33.7 million (33 cents) a year ago. Revenue fell 33 percent to less than $841 million. The quarter included a severance related charge of 2 cents per share, bringing the company’s adjusted per-share earnings to 14 cents.

That disappointed analysts surveyed by Thomson Reuters, who on average were expecting earnings of 17 cents a share on revenue of more than $846 million.

Even so, the company was more positive about the future, noting that the economic environment appears more stable. The company did not, however, provide an outlook for the current or future quarters.

“Our pipeline is healthy and we have signed significant new business in the quarter, including what we expect to be the largest single freight forwarding win in the company’s history,” Chief Executive Eric Kirchner said in a statement, noting that the new contract should begin shipping later this month.

UTi provides a variety of services to shippers. It is based in the British Virgin Islands but has its American headquarters in Long Beach.

Shares were up 42 cents, or 3 percent, to $13.10 in midday trading on Nasdaq.

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