UTi Worldwide Reports Fiscal 2013 Third Quarter Results

UTi Worldwide Inc today reported financial results for its fiscal 2013 third quarter ended October 31, 2012.
 
Fiscal Third Quarter 2013 vs. 2012 Results:
 
Revenues were $1,128.9 million, a decrease of 10.7 percent from $1,264.5 million.
 
Net revenues (revenues minus purchased transportation costs) were $403.6 million, a decrease of 9.0 percent from $443.4 million.
 
Net income attributable to UTi Worldwide Inc. was $10.5 million, or $0.10 per diluted share, compared to $28.5 million, or $0.28 per diluted share.
 
After-tax severance and legal costs were $5.8 million, compared to $1.1 million.
 
Excluding severance and legal costs, adjusted net income attributable to UTi Worldwide Inc. was $16.3 million, or $0.16 per diluted share, compared to $29.7 million, or $0.29 per diluted share.
 
All references to adjusted items and organic items in this release refer to non-GAAP results. A reconciliation of GAAP to these non-GAAP results is provided in the supplemental financial information attached to this release.
 
Eric W. Kirchner, chief executive officer, said, "Macroeconomic and freight conditions remained weak throughout our fiscal 2013 third quarter, and we see no real catalysts to drive increases in the foreseeable future. Global economies are slowing, consumer demand is weak and clients remain very cautious. As we anticipated, a broad peak season failed to materialize in the third quarter. Airfreight lagged the most, as weight per shipment fell and clients favored lower cost options like ocean freight. Competition remains intense and carriers have attempted to increase shipping rates. This dynamic is pressuring net revenue per unit throughout the industry.
 
Contract logistics activity was lower in the third quarter, primarily in Europe and the Americas, while distribution activity in Africa was higher. We continued to win new business, but at a pace that was insufficient to offset the reductions from existing business in both segments."
 
Kirchner continued, "Our operating expenses, which are more closely tied to shipments rather than tonnage or TEU count, did not decrease as much as net revenue. In response to lower volumes, we are taking additional actions to remove approximately $25 million in annualized expenses, some of which we had planned to execute through our transformation in fiscal 2014. Our system rollout is progressing. We have launched our new operating system in five countries and our new financial system in 12 countries. We have plans to deploy both systems in more countries by the end of the fiscal year. We remain focused on achieving our operating ratio targets within fiscal 2015."
 
Revenues decreased 10.7 percent in the fiscal 2013 third quarter compared to the same period last year, primarily due to the impact of currency, weaker airfreight tonnage and lower pricing. Net revenues fell 9.0 percent in the fiscal 2013 third quarter, primarily due to currency translation and lower volumes. On an organic basis, revenues decreased 6.5 percent, while net revenues decreased 4.2 percent in the fiscal 2013 third quarter, compared to the same period last year.
 
Operating expenses less purchased transportation costs were $380.9 million in the third quarter of fiscal 2013, compared to $395.1 million in the same period last year. The company accrued $5.2 million for a recent legal judgment relating to a warehouse fire in 2006. Severance costs (before taxes) totaled $3.9 million in the fiscal 2013 third quarter, compared to $1.7 million in the third quarter of last year. Severance costs in both periods were primarily related to the company’s transformation activities.
 
Excluding severance and legal costs from both periods, adjusted operating expenses less purchased transportation costs were $371.8 million in the fiscal 2013 third quarter, a decrease of 5.5 percent from $393.4 million in the same period last year, primarily due to currency effects. On an organic basis, adjusted operating expenses less purchased transportation costs decreased 0.6 percent, compared to the same period last year.
 
Operating income in the fiscal 2013 third quarter was $22.7 million. Excluding severance and other costs described above, adjusted operating income was $31.8 million, or 7.9 percent of net revenues. This compares to adjusted operating income in the fiscal 2012 third quarter of $49.9 million, or 11.3 percent of net revenues. Currency effects reduced operating income in the fiscal 2013 third quarter by $1.9 million. In addition, the negative impact from superstorm Sandy and the transportation strikes in South Africa are estimated at approximately $3.5 million in the third quarter.

Quelle: eyefortransport

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