UTi Worldwide profit surged 47 percent in the third quarter, primarily as a result of strong air freight growth, but the forwarder forecasts a slowdown in the fourth quarter.
Revenue increased 24 percent to $1.2 billion due to higher air and ocean freight volumes. Net revenue increased 12 percent to $406.1 million as purchased transportation costs put pressure on yield. Operating income climbed 40 percent to $43.9 million, and net profit amounted to $26.4 million compared with $18 million in the third quarter a year earlier, the company said in a statement.
“Our improved third quarter performance was the result of higher volumes and greater operating efficiency, partially offset by lower yields,” said Eric W. Kirchner, chief executive officer.
“Volume growth, while still ahead of last year, moderated in the third quarter. Airfreight volumes remained robust primarily because of tight inventory levels, but comparisons have become more challenging,” he said.
“Airfreight tonnage in the fourth quarter is expected to be at levels similar to last year, while ocean freight TEUs may be lower due to unseasonably high levels last year,” Kirchner said.
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