DOW JONES NEWSWIRES
UTi Worldwide Inc. (UTI) swung to a fiscal fourth-quarter net
loss on $109.9 million in goodwill write-downs as results fell well
short of analysts' expectations amid the global slump in trade
curtailing shipping needs.
Chief Executive Eric Kirchner said the volume woes, which were
most acute in January, were largely overcome by cuts in operating
costs. The stronger dollar also hurt results.
Kirchner, who departed United Parcel Service Inc. (UPS) in
January to join the supply-chain services provider, said UTi has
taken steps to further cut costs since the fiscal year ended Jan.
31, including a salary freeze and an undisclosed amount of layoffs.
Those steps are seen saving UTi some $50 million from the latest
quarter's annual spending rate.
Shares rose 0.9% in premarket trading to $12.89.
The company reported a net loss of $89.8 million, or 90 a share,
compared with year-earlier net income of $18 million, or 18 cents a
share. Excluding the write-down and restructuring charges, earnings
fell to 15 cents from 24 cents.
Revenue slid 26% to $894.1 million.
Analysts surveyed by Thomson Reuters, on average, projected
earnings of 23 cents a share on revenue of $1.11 billion.
UTi said the decline was partially due to getting out of some
businesses as part of an earlier restructuring effort. Excluding
that and currency fluctuations, the company said revenue was
"essentially flat."
UTi announced last year a 7% workforce reduction to cut costs
amid weaker-than-expected results. The company's sales and profits
had surged in recent years as the global economy chugged along, but
like many companies is now feeling the effects of the ongoing
slowdown.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com
