UPDATE 1-Stronger dollar hits UTi's revenue, losses mount

Thu Jun 5, 2014 9:39am EDT

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June 5 (Reuters) - Logistics company UTi Worldwide Inc reported a bigger-than-expected quarterly loss as a stronger dollar more than offset higher volumes in its air and ocean freight businesses.

Shares of UTi, which gets two-thirds of its revenue from outside the Americas, fell more than 4 percent in early trading on Thursday.

Revenue fell 3.3 percent to $1.05 billion. Excluding the currency impact, net revenue rose 3.8 percent in the first quarter, the company said in a statement.

UTi has also been incurring costs related to the implementation of its new service and billing platform, which it expects to save $95 million annually by the end of fiscal 2015.

The third-party logistics provider said on Thursday it incurred higher payroll-related and business transformation costs linked to the implementation during the quarter.

The company started deploying the system in September 2013 and expects to complete it by October.

The net loss attributable to UTi increased to $43.2 million, or 43 cents per share, in the first quarter ended April 30, from $12.4 million, or 12 cents per share, a year earlier.

Excluding items, UTi posted a loss of 9 cents per share.

Analysts on average had expected a loss of 4 cents per share on revenue of $1.10 billion, according to Thomson Reuters I/B/E/S.

UTi's shares were down 4.1 percent at $9.81 in early trading. The stock has fallen about 31 percent this year to Wednesday's close, compared with a 26 percent rise in the Dow Jones U.S. Industrials Transportation index. (Reporting by Ankit Ajmera in Bangalore; Editing by Saumyadeb Chakrabarty)

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