UTi Worldwide -13% as losses widen, guidance cut

|About: UTi Worldwide Inc. (UTIW)|By:, SA News Editor

UTi Worldwide (NASDAQ:UTIW) -12.9% AH after reporting a larger than expected FQ4 loss on a 10% Y/Y decline in revenue as well as one-time expenses related to restructuring efforts.

UTIW also lowers its EBITDA guidance for the year ending January 2016 to $125M-$150M from its previous projection of $190M-$210M, reflecting expectations for currency exchange rates, and a reduced outlook for its freight forwarding business as it executes on its new strategy.

During the latest period, freight forwarding segment net revenue fell 30% Y/Y to $118M amid a 6.6% decline in air freight volume and a 4.9% drop in ocean freight volumes; contract logistics and distribution revenue fell 1.6% to $194M but rose 3.6% when excluding currency effects.

UTIW says it expects its restructuring and reorganization efforts will begin to show results in the current quarter.

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