DSV target UTi sees airfreight volumes slide as it stays in the red
10 / 12 / 2015
DSV takeover target UTi remained in the red during its financial third quarter, while airfreight volumes also suffered a double-digit decline.
The company recorded a 17.9% year-on-year decline in revenues to $884.7m during the quarter ended October 31 while it recorded a net loss of $32.7m compared to $33.7m last year.
It said its revenue results were affected by currency fluctuations, particularly the dollar compared with the euro and South African rand.
Meanwhile, its airfreight forwarding revenues decreased by 24% compared to the same period in 2014 to $243m on the back of a 10% decline in volumes, currency effects and lower selling prices.
When the effects of foreign currency fluctuations are excluded, airfreight forwarding revenues decreased by 16%, compared to the corresponding prior year period.
When DSV announced plans to purchase UTi in October, a move which will create the world’s eighth largest air forwarder, it said it believed it could turn the losses around.
The Danish forwarder said UTi’s issues were related to the size of its network compared with its volumes. By combining the volumes of the two forwarders, profitability would be improved.