UTi Worldwide's fiscal third-quarter profit rose eight percent as the freight forwarding company reported revenue growth in all major segments, led by a double-digit jump in contract logistics, though the company warned of the slowing economic environment, reported Dow Jones Newswires.

    UTi, which resells cargo space and handles Customs clearance and warehousing for companies needing to move goods, has seen its revenue rise as shipping demand improved. But the company warned in June that some customers appeared to be drawing down inventories rather than stocking up on new goods due to the uncertain global economy.

    Like others in the sector, UTi has also struggled with passing along cargo carriers' price increases to customers and faces uncertain shipping volume prospects as the pace of economic recovery slows.

    Chief executive Eric Kirchner said the company is focused on controlling expenses to maintain growth amid a slowing environment and warned of weakening air freight volume.

    For the quarter ended Octtobr 31, UTi reported a profit of US$28.5 million, or 28 cents a share, up from $26.4 million, or 26 cents, a year earlier.

    Revenue increased 5.5 percent to $1.3 billion. Excluding purchased transportation costs, net revenue rose 9.2 percent.
Operating margin widened to 3.8 percent from 3.7 percent.

    Contract logistics revenue increased 15.7 percent on new business wins and operational improvements. Air freight forwarding revenue, the largest top-line contributor, edged up 0.8 percent, while ocean freight forwarding revenue rose two percent.

(source:http://www.cargonewsasia.com/category.aspx?id=7)