June 5, 2015 9:00 AM, EDT

UTi Worldwide Narrows Fiscal-Quarter Loss

UTi Worldwide Inc.
UTi Worldwide Inc. narrowed its loss for the fiscal 2016 first quarter to $35.4 million, or 35 cents per share, from the prior-year-period loss of $43.4 million that included one-time debt reduction costs.

UTi, in Long Beach, California, reported that revenue fell 6.8% to $973.3 million during the period ended April 30, 2015. In the prior-year period, revenue was $1.04 billion, and debt reduction costs were $21.8 million.

The results showed weaker performance at the air and ocean forwarding units, which accounted for about 70% of the revenue decline and swung to an $11.1 million loss before interest and taxes from a $1.2 million profit. Contract logistics, the other main business unit, remained profitable at the company that ranks No. 9 on the Transport Topics Top 50 list of the largest logistics companies in North America.

“Our first-quarter results were in line with our expectations coming out of the fourth quarter, reflecting solid execution against the key priorities of our turnaround plan,” CEO Edward Feitzinger in a statement said.

Net revenue, or the amount left after paying for purchased transportation, rose 5.5% to $329.5 million. Unfavorable currency exchange rates decreased revenue, which would have increased 4.1% if the U.S. dollar had remained constant with other currencies on a year-to-year basis.