UTI WORLDWIDE POSTS STRONG 2ND-QUARTER RESULTS
UTi, the non-asset-based supply chain management and logistics services provider, reported double-digit growth in earnings for its second quarter, ending July 31.
Net income rose 43 percent to $7.7 million. Operating income improved 35 percent to $11.4 million, on revenue of $274.8 million, up 25 percent. Net revenues increased 11 percent to $87.5 million.
All regions expect Africa contributed to the company's operating income growth, while growth in Africa's results was impacted by a 25-percent decline in the South Africa rand.
While North America revenues were flat, revenue gains region were 50 percent in Europe, 43 percent in the Asia Pacific and slightly higher in Africa. Europe results benefited from the acquisition of Grupo SLi earlier this year.
Air-freight and ocean freight volumes reached record levels, especially for strong volumes moving from Asia to the United States, UTi said.
For its fiscal first-half ending July 31, net income climbed 33 percent to $12.5 million, while operating income rose 40 percent to $19.4 million. Gross revenues improved 18 percent to $510.5 million while net revenues increased 7 percent to $164.5 million.