UTi Worldwide Reports Fiscal 2011 Second Quarter Results

LONG BEACH, Calif., Sept. 2, 2010 (GLOBE NEWSWIRE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today reported financial results for its fiscal 2011 second quarter ended July 31, 2010.

Fiscal Second Quarter 2011 vs. 2010 Results:

• Revenues were $1,151.1 million, an increase of 37 percent from $840.5 million.
• Net revenues (revenues minus purchased transportation costs) were $379.1 million, an increase of 12 percent from $339.4 million.
• Operating income was $33.9 million, an increase of 51 percent from $22.4 million.
• Net income attributable to UTi Worldwide Inc. was $18.9 million, or $0.19 per diluted share, compared to $11.8 million, or $0.12 per diluted share.

Eric W. Kirchner, chief executive officer, said, "Our improved results were primarily driven by strong volumes and better operating margins. Airfreight 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. 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.

"We continue to be encouraged by improvements in our contract logistics and distribution business, which reported solid revenue growth and higher operating margins. Client volumes improved in the quarter, particularly in retail and consumer markets, and we continue to manage our operations more efficiently. Our transformation initiatives remain on schedule and we are making good progress in all areas."

Revenues increased 37 percent in the 2011 fiscal second quarter compared to the prior-year second quarter primarily due to the higher airfreight and ocean freight volumes. Net revenues increased 12 percent, less than the revenue increase, principally because of yield pressure. On an organic, constant currency basis, adjusted net revenues increased 11 percent compared to the second quarter last year.