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UTi Worldwide Inc. Reports Operating Results (10-Q)

December 11, 2012 | About:
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10qk

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UTi Worldwide Inc. (UTIW) filed Quarterly Report for the period ended 2012-10-31.

Uti Worldwide, Inc. has a market cap of $1.46 billion; its shares were traded at around $12.83 with a P/E ratio of 20.1 and P/S ratio of 0.3. The dividend yield of Uti Worldwide, Inc. stocks is 0.4%. Uti Worldwide, Inc. had an annual average earning growth of 12% over the past 10 years.

Highlight of Business Operations:

Staff Costs. Staff costs in our Freight Forwarding segment decreased $8.1 million, or 7%, for the three months ended October 31, 2012, compared to the corresponding prior year period; however, when the effects of foreign currency fluctuations are excluded, staff costs in our Freight Forwarding segment decreased $3.2 million, or 3%. As a percentage of our Freight Forwarding segment revenues, staff costs were approximately 14% for the three months ended October 31, 2012 compared to 13% in the corresponding prior year period. Movements of staff costs in our Freight Forwarding segment are typically driven by changes in total shipment counts rather than changes in volumes. The number of airfreight shipments declined 7%, in the three months ended October 31, 2012 compared to the corresponding prior year period, which decline was significantly less than the 12% decline in tonnage experienced between the comparable periods, as our clients moved fewer kilos per shipment. These declines negatively impacted productivity in our Freight Forwarding segment for the three months ended October 31, 2012, compared to the corresponding prior year period. The number of ocean freight shipments was consistent over the comparative period.

Other. Other contract logistics and distribution revenues decreased $6.1 million, or 15%, for the three months ended October 31, 2012, compared to the corresponding prior year period; however, when the effects of foreign currency fluctuations are excluded, other contract logistics and distribution revenues decreased $2.5 million, or 6%. The decrease of other contract logistics and distribution revenues was primarily the result of decreased volumes handled in certain of our transportation management operations. Other purchased transportation costs decreased $0.2 million, or 2%, for the three months ended October 31, 2012, compared to the corresponding prior year period; however, when the effects of foreign currency fluctuations are excluded, other purchased transportation costs increased $0.7 million.

Ocean Freight Forwarding. Ocean freight forwarding revenues decreased $42.7 million, or 5%, for the nine months ended October 31, 2012, compared to the corresponding prior year period; however, when the effects of foreign currency fluctuations are excluded, ocean freight forwarding revenues increased $11.8 million, or 1%. Ocean freight volumes increased 2% for the nine months ended October 31, 2012 over the corresponding prior year period. When the effects of foreign currency fluctuations are excluded, $15.9 million of the increase in ocean freight forwarding revenues was attributable to an increase in ocean freight forwarding volumes, which increase was partially offset by a decrease of $4.1 million in our selling rates caused in part by decreased carrier rates incurred by us.

Ocean freight forwarding net revenues decreased $1.6 million, or 1%, for the nine months ended October 31, 2012, compared to the corresponding prior year period, however, when the effects of foreign currency translations are excluded, ocean freight forwarding net revenues increased $6.4 million, or 4%. Ocean freight yields for the nine months ended October 31, 2012 increased approximately 60 basis points to 17.3% compared to 16.7% for the corresponding prior year period. When the effects of foreign currency fluctuations are excluded, (i) $3.7 million of the increase in ocean freight forwarding net revenues was attributable to yield improvement, and (ii) $2.7 million of the increase was attributable to an increase in volumes.

Staff Costs. Staff costs in our Freight Forwarding segment decreased $18.4 million, or 5%, for the nine months ended October 31, 2012, compared to the corresponding prior year period; however, when the effects of foreign currency fluctuations are excluded, staff costs in our Freight Forwarding segment decreased $0.4 million. As a percentage of our Freight Forwarding segment revenues, staff costs were approximately 14% for the nine months ended October 31, 2012 compared to 13% in the corresponding prior year period. Movements of staff costs in our Freight Forwarding segment are typically driven by changes in total shipment counts rather than changes in volumes. The number of airfreight shipments declined 6%, in the nine months ended October 31, 2012 compared to the corresponding prior year period, which decline was significantly less than the 13% decline in tonnage experienced between

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