UTi Worldwide Q1 fiscal report: profit declines 6%, gross revenue increases 22%
UTi Worldwide Inc., global provider of freight and supply chain services, registered in the British Virgin Islands, has reported a 6.2% drop in first-quarter earnings. The main reasons of decline are higher operating and other expenses, despite solid revenue growth. Company’s gross and net revenues were up 22% and 24%, respectively, helped by organic growth and acquisitions.
BVI company’s net income for the quarter declined to $18.12 million or $0.18 per share, from $19.32 million or $0.20 per share a year ago. For the fourth quarter 2006, company’s net income was $23.6 million or $0.24 per share.
The company’s total gross revenue rose 22% in the first quarter to $944.74 million from $733.7 million in the first quarter of 2006. Total net revenue for the quarter reached $336.04 million, that is up 24% from $271.63 million in the same period of the last year. The increase in quarterly revenue was attrubuted by company analysts to organic growth across all geographic regions and contributions from the company’s acquisitions made since February 1, 2006.
UTi Worldwide also informed that its operating income for the quarter rose $31.4 million, from $30 million in the same quarter of fiscal 2006. The company also recorded net interest expenses of $4.09 million in this quarter, higher than the $2.87 million reported last year.
The company announced its new strategic plan for 5 years and affirmed its earnings per share outlook for fiscal year 2008. Going forward, UTi confirmed its previously announced fiscal 2008 earnings per share guidance in the range of $1.14 - $1.22.