Uti Worldwide reports strong increase in revenues in second quarter

For fiscal second quarter ending July 31, Uti Worldwide reported strong revenue growth of $1.3bn, an increase of almost 13% over the same period last year. Net revenue increased 17% to $39m.
Growth in all segments was reported. In particular, Contract Logistics and Distribution reported strong growth at 18.7% to $212m and 15.3% to $139m respectively. Streamlining the company’s operations proved successful as Contracts Logistics and Distribution wins were noted in Asia Pacific and Africa as well as improvements in the US distribution business.

Like other freight forwarders that have reported earnings recently, growth in Freight Forwarding revenue was mostly due to currency effects and fuel surcharges. Airfreight forwarding revenue grew 11% to $465m and ocean freight forwarding revenue increased 5.2% to $320.7m. Ocean freight volume increased 2% while airfreight volume declined 2%. Airfreight volume was lower due to the difficult comparison of last year’s particularly strong airfreight volume. Net revenue per unit of cargo increased for the freight forwarding segment as well. Net revenue per kilo in air freight improved 22%, while ocean freight revenue per TEU increased 13% in the second quarter compared to the same period last year.

Operating expenses increased 12.6% during the quarter because of higher fuel and purchased transportation costs. However, Uti was able to pass along higher fuel surcharges to customers. Contract Logistics recorded the largest increase in expenses, 27.6%, for the quarter.

Regionally, Africa noted the strongest net revenue growth for both Freight Forwarding and Contract Logistics and Distribution. For Freight Forwarding, net revenue increased 24.3% to $28.7m and for Contract Logistics and Distribution, net revenue increase 25.3% to $85.5m. New wins contributed to the increase in revenue.

Uti Worldwide noted it was seeing mixed signs for a peak season this year. According to CEO Eric Kirchner, depending on the tradelane and industry, there is a potential for a very late and compressed peak as it relates to ocean. From the air perspective, it would appear that inventories may be low and that might lead to a peak season in air.

For the rest of the year, Uti Worldwide remains cautiously optimistic. As shown in the second quarter, the company has proven successful in growing revenue while streamlining global operations and controlling costs. It expects to continue its success moving forward.

Quelle: eyefortransport
Portal: www.logistik-express.com