UTi Posts 4Q Loss On Write-Down; More Jobs Cut

   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; [e-mail]