UTi Worldwide Inc., an international logistics company registered in the British Virgin Islands, has reported results for the 4th quarter and fiscal year period ended January 31, 2009. The company has reported losses, and as the reason it named charges and a large drop in freight and logistics volumes.
The BVI company said it has taken several steps to cut costs since the beginning of the 4th quarter of the year, among them – salary freeze, revision to company’s structure, discretionary spending cuts and job cuts. These measures would allow to reduce operating costs for fiscal 2010 by about $50 mln.
UTi Worldwide’s losses for the quarter made $89.8 mln – compared with a $18 mln profit in the same period last year. Revenue for the fourth quarter period fell 26 per cent, and made $894.1 mln, from $1.2 bln in the same quarter last year. The company said it earned 15 cents per share during the reported quarter; analysts surveyed by Thomson Reuters expected a profit of 23 cents per share on $1.11 bln in revenue.
Company’s CEO Eric W. Kirchner said in a statement that company’s fourth-quarter loss became the result of weakening economic environment and global trade slowdown , which reduced volumes in forwarding and logistics.
For the full year 2008, the BVI company lost $4.6 mln – compared with a profit of $98.7 mln in its previous fiscal year. Company’s revenue rose 4 percent to $4.54 bln from $98.7 mln. Excluding charges, UTi Worldwide’s earnings made $1.04 per share. Analysts expected $1.05 per share on $4.76 billion in revenue.
The BVI company did not provide financial guidance for the current year.