Some months ago BVI-registered shipping logistics company UTi Worldwide Inc. sold 10,000 shares of its common stock, for $29.70 a piece. This week, company’s shares fell dramatically, – $6.06, or 20.2%, to $23.99 in afternoon trading on the Nasdaq Stock Market, – after the company announced its fourth-quarter earnings which missed the expectations of financial analysts.
UTi Worldwide, which provides its customers air and ocean freight forwarding and contract logistics, has reported on March 29 that profit for the three months ended January 31 more than doubled to $23.6 million, or 24 cents per share, and company’s revenue for this quarter grew 31% from the previous year. However, the analysts polled by First Call/ Thomson Financial had expected a profit of 26 cents per share, on revenue of $934.1 million. BVI company’s operating income in the fourth quarter rose to $32.8 million from $17.5 million in the previous year quarter.
It was noted by R.W. Baird & Co. analysts that top-line growth came in ahead of expectations, but elevated costs drove a “meaningful†earnings miss, which was largely related to personnel expenses. Thomas R. Wadewitz, an analyst at J.P. Morgan Securities, also pointed to costs related to the company’s growth initiatives.
UTi Worldwide said its staff costs jumped 20% – from $151.5 million during the same period of 2006 to $181.8 million. Total operating costs 26% – from $236.2 million to $298.4 million.
For the 12 months period ended January 31, 2007, BVI company’s net income increased to 107.9 million or $1.08 per share from $55.2 million or $0.56 per share in the previous year. Net revenues for the fiscal year rose 27%, from $966.4 last year to $1.22 billion. Gross revenue for the period increased to $3.56 billion, from $2.79 billion in 2006.