* Q2 adj EPS $0.19 vs est $0.17
* Revenue up 37 pct at $1.15 billion
* Says H2 volume growth to moderate on slowing economy
* Shares up as much as 11 pct
Sept 2 Logistics company UTi Worldwide Inc
(UTIW.O) posted better-than-expected quarterly results, helped
by higher volumes as the freight and trucking industry slowly
recovers from one of its severest downturns in decades.
Shares of the company, with a market value of $1.42
billion, rose as much as 11 percent to $15.85 but pared some
gains and were up 6 percent at $15.16 Thursday late morning on
Nasdaq. They have risen about 9 percent in the last 52 weeks.
Air and ocean freight revenue, which together comprise
three quarters of the company's total revenue, rose 55 percent
and 48 percent, respectively, in the second quarter ended July
The freight market, which was in recession for about three
years, had put pressure on pricing and dented margins at
truckers as well as freight brokers. But a slew of
truck-operator bankruptcies sucked out excess capacity from the
industry, easing margins.
"Air freight and ocean freight volumes continued to grow
faster than the market and were higher than volumes recorded in
the second quarter two years ago, prior to the financial
crisis," said Chief Executive Eric Kirchner said in a
"Our improved results were primarily driven by strong
volumes and better operating margins."
Research firm Robert W. Baird backed its "outperform"
rating on the stock, citing the company's market share gains,
but warned pricing pressure would likely continue.
The Long Beach, California-based company said the revenue
growth was tempered by pricing concerns due to continued high
Typically, when carrier rates rise, the company has to pay
for the cost and they are not able pass that cost on to
UTi also said it was expecting volume growth to moderate
during the second half of the year, citing a slowing global
The outlook is in contrast to the optimistic view for the
second half given by rivals CH Robinson (CHRW.O) and Echo
Global Logistics (ECHO.O) when they reported
better-than-expected second-quarter results.
For the second quarter, net income attributable to the
company was $18.9 million, or 19 cents a share, while analysts
polled by Thomson Reuters I/B/E/S had expected earnings of 17
cents a share, excluding items.
(Reporting by Soham Chatterjee in Bangalore; Editing by