UTi Worldwide Loss Narrows in Fiscal 3Q
UTi, of Long Beach, California, lost $33.7 million, or 35 cents, in the period ended Oct. 31. Revenue declined 18% to $884.7 million. Its loss from operations, excluding interest and taxes, was reduced to $11.8 million from $21.8 million. The contract logistics and distribution unit continued to post a profit, and profit margins were maintained in the air freight forwarding sector. However, margins fell, and net revenue, or the amount left after transport costs were paid, fell by 23%.
UTi, which ranks No. 9 on the Transport Topics Top 50 list of the largest logistics companies in the United States, Canada and Mexico, announced that in October that DSV would pay $7.10 per share, or 50% more than the closing price Oct. 8. DSV is No. 13 on TT’s Ocean Freight Forwarding list and No. 17 on the Airfreight Forwarding compilation.
The companies expect to complete the deal in the first quarter, after approval by UTi shareholders.
The acquisition of the U.S. company, which has struggled to reverse recent losses through a restructuring, was one of multiple actions in the logistics merger and acquisition field. Others have involved companies such as XPO Logistics, FedEx Corp., UPS Inc. and Echo Global Logistics.
