UTi Worldwide reported a net loss of $4.4 million in the second quarter of fiscal year 2014, ending July 31, 2013, compared with a net profit of $18.9 million in the same period last year.
Total quarterly revenue was $1.13 billion, decreasing 4.5 percent year-over-year from $1.18 billion. Revenue from the air freight forwarding division in the second quarter was $355.1 million, down 4.1 percent, and revenue from the ocean freight forwarding unit was $318.7 million, falling 4.0 percent. Customs brokerage revenue in the quarter was $32.3 million, compared with $30.4 million in the same quarter a year ago, while contract logistics revenue was $186.4 million, versus $203.8 million. Quarterly revenue from distribution was $145.2 million, declining year-over-year from $146.5 million.
In the first six months of fiscal year 2014, UTi Worldwide posted a net loss of $16.9 million, compared with a net profit of $31.8 million in the first half of the previous year, and total revenue of $2.21 billion, versus $2.35 billion.
“Our results in the fiscal 2014 second quarter continue to reflect a lackluster global economy, challenging trading conditions and costs associated with our comprehensive business process transformation,” said Eric W. Kirchner, CEO of the third-party logistics provider, in a written statement.
Kirchner noted that since July 1, the company has deployed its new freight forwarding operating system in seven countries, including the U.S., U.K. and Hong Kong. There are currently 22 countries on the system to-date, representing about 35 percent of total freight forwarding shipments, and the UTi Worldwide expects that more than 70 percent of shipments will be on the new system by the end of fiscal 2014. The company believes the new system will create potential cost savings of $75 million to $95 million in coming months.