UTi Worldwide Narrows Fiscal-Quarter Loss
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.
