UTi Worldwide Reports Fiscal 2011 Third Quarter Results

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

Fiscal Third Quarter 2011 vs. 2010 Results:

• Revenues were $1,198.4 million, an increase of 24 percent from $967.2 million.
• Net revenues (revenues minus purchased transportation costs) were $406.1 million, an increase of 12 percent from $361.5 million.
• Operating income was $43.9 million, an increase of 40 percent from $31.4 million.
• Net income attributable to UTi Worldwide Inc. was $26.4 million, or $0.26 per diluted share, compared to $18.0 million, or $0.18 per diluted share.

Eric W. Kirchner, chief executive officer, said, "Our improved third quarter performance was the result of higher volumes and greater operating efficiency, partially offset by lower yields. Volume growth, while still ahead of last year, moderated in the third quarter. Airfreight volumes remained robust primarily because of tight inventory levels, but comparisons have become more challenging. Ocean freight peaked in August, and then weakened in each subsequent month. Airfreight tonnage in the fourth quarter is expected to be at levels similar to last year, while ocean freight TEUs may be lower due to unseasonably high levels last year. Yield pressure also showed signs of moderation in the third quarter. Carrier spot rates were slightly more favorable as a result of declining demand and available capacity, and we continued to adjust our pricing in response to market conditions. While this is encouraging, the rate of yield improvement may not be sufficient to offset anticipated volume weakness in the fourth quarter.

"Our contract logistics and distribution business reported solid revenue growth and operating margins. Existing business was strong in consumer and retail sectors, partially offset by slowing volumes in automotive and technology."