UTi Worldwide Loss More Than Triples as Revenue Dips
UTi Worldwide Inc.’s fiscal 2016 second-quarter loss more than tripled to $70.6 million, or 70 cents per share, reflecting a decline in revenue and profit margin in its forwarding and other supply chain businesses.
The Long, Beach, California, company, which ranks No. 9 on the Transport Topics Top 50 list of the largest logistics companies in the United States, Canada and Mexico, lost $19.2 million in the second quarter of the prior fiscal year. Revenue fell 16.5% to $913.9 million from $1.09 billion. Net revenue, the amount remaining after paying for transportation, fell 14% to $338.5 million.
Lower air and ocean freight volume as well as unfavorable currency exchange rates hurt the results, as did a $50 million one-time charge for asset impairment. Excluding currency effects, net revenue fell 5.4% and revenue dipped 8.8%.
“Normal seasonal volume growth did not occur in the second fiscal quarter due to the global macroeconomic slowdown,” CEO Edward Feitzinger said. “We do not expect macroeconomic headwinds to abate during the second half of the year, but we do anticipate that our second-half volumes and net revenues will benefit from the new client wins we recorded in the first half of the year.”
