UTi revenues down 26

UTi Worldwide has reported its financial results for the fiscal 2009 fourth quarter ending 31 January 2009. Revenues decreased 26 per cent to US$894.1 million from $1,202.2 million.

Blame was placed at the feet of goodwill impairment and other charges. Results were also affected by the significant and rapid decline in freight and logistics volumes and by the considerable weakening of most currencies against the US dollar.

Eric Kirchner (right), chief executive officer, said: “While our operating expenses are at their lowest level in nearly two years, we have taken further steps since the beginning of the quarter to reduce costs, without compromising our focus on providing the highest levels of client service.

“These actions include a salary freeze and a revision to our incentive structure for fiscal 2010, a reduction in headcount where necessary in accordance with volume declines and a further controlling of discretionary expenses such as travel.

“These actions are expected to reduce operating costs for fiscal 2010 by approximately $50 million from our fourth-quarter run rate. We continue to focus on our clients, deepening our existing relationships and winning new business, while remaining disciplined on cost control.”

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