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UTi Worldwide (UTIW) Reports Fiscal 2010 Third Quarter Results

LONG BEACH, Calif., Dec. 3, 2009 (GLOBE NEWSWIRE) — UTi Worldwide Inc. (Nasdaq:UTIW) today reported financial results for its fiscal 2010 third quarter ended October 31, 2009.

 Fiscal Third Quarter 2010 vs. 2009 Results:

 * Revenues were $967.2 million, a decrease of 20 percent from
   $1,210.1 million.
 * Net revenues (revenues minus purchased transportation costs)
   were $361.5 million, a decrease of 11 percent from $408.2
   million.
 * Volumes improved sequentially with airfreight and ocean freight
   outpacing the market.
 * Operating income was $31.4 million, a decrease of 42 percent
   from $53.8 million.
 * Income from continuing operations attributable to UTi Worldwide
   Inc. was $18.0 million, or $0.18 per diluted share, compared to
   $35.8 million, or $0.36 per diluted share.

Eric W. Kirchner, chief executive officer, said, “Declines in revenue moderated considerably on a year-over-year basis in the third quarter. Volumes improved throughout the third quarter, particularly in airfreight which experienced an increase in the month of October, the first increase since early 2008. Our sales focus has helped us outpace the market, which we have not accomplished in more than a year. But this improvement was largely offset by industry-wide yield pressure as carriers raised rates substantially, particularly out of Asia. These higher rates could not always be recovered in the near term. While yield contraction was widely expected in the second half of the year, the squeeze was greater than anticipated in the third quarter because of aggressive carrier actions. We are planning for yields to trend towards historic levels as carrier rates adjust to better reflect supply and demand.

“Our overall operating margin continued to show improvement on a sequential basis. Our contract logistics business performed quite well with margins in this segment continuing to move higher in the quarter. And our year-to-date free cash flow continues to approximate net income.”

The decrease in revenues in the 2010 fiscal third quarter compared to the prior-year third quarter of 20 percent was primarily due to substantially reduced fuel surcharges, and to a lesser extent, pricing declines and lower ocean freight and distribution volumes. Net revenue decreased 11 percent principally due to yield pressure in the quarter. On an organic, constant currency basis, adjusted net revenue declined 13 percent compared to the third quarter a year ago.

Operating expenses in the third quarter of fiscal 2010, excluding purchased transportation costs, were $330.1 million, representing a decrease of seven percent compared to the same period last year. The decrease reflects the downsizing of the business and the ongoing discipline to maintain the benefits achieved through our earlier cost reduction efforts. These savings have been somewhat offset by additional operating costs associated with new business successes in both freight forwarding and contract logistics. Operating expenses in the fiscal 2010 third quarter also included severance charges of $2.5 million.

At the beginning of fiscal 2010, the company announced a targeted annual cost savings plan of $50 million against its fiscal 2009 fourth quarter run-rate. Year-to-date the company remains on track to achieve this target though savings realized through the plan have been obscured by the weakening U.S. dollar and partially offset by operating costs associated with new business. On a comparative, constant currency basis consistent with the fourth quarter run-rate, operating expenses were $10.4 million lower in the fiscal 2010 third quarter and $38.9 million lower year-to-date, on track with the $50 million target. A reconciliation of fiscal 2010 operating expenses to the fourth quarter run-rate is provided in the tables attached to this press release.

The company reported operating income in the fiscal 2010 third quarter of $31.4 million, which represented 8.7 percent of net revenues. This compares to operating income in the year-ago third quarter of $53.8 million, or 13.2 percent of net revenues.

Investor Conference Call:

UTi management will host an investor conference call today, December 3, 2009, at 8:00 a.m. PST (11:00 a.m. EST) to review the company’s financials and operations for the fiscal 2010 third quarter. Investment professionals are invited to participate in the live call by dialing 877-570-6091 (domestic) or 702-696-4824 (international) using conference ID 42511216. The call will be open to all interested investors through a live, listen-only audio Internet broadcast at www.go2uti.com and www.earnings.com. For those who are not available to listen to the live broadcast, the call will be archived for one year at both Web sites. A telephonic playback of the conference call also will be available from approximately 11:00 a.m. PST, today, through December 11, 2009, by calling 800-642-1687 (domestic) or 706-645-9291 (international) and using replay passcode 42511216.

About UTi Worldwide:

UTi Worldwide Inc. is an international, non-asset-based supply chain services and solutions company providing air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics, truckload brokerage and other supply chain management services. The company serves a large and diverse base of global and local companies, including clients operating in industries with unique supply chain requirements such as the pharmaceutical, retail, apparel, chemical, automotive and technology industries. The company seeks to use its global network, proprietary information technology systems, relationships with transportation providers, and expertise in outsourced logistics services to deliver competitive advantage to each of its clients’ supply chains.

Use of Non-GAAP Financial Information

This press release includes “non-GAAP financial measures” within the meaning of the Securities and Exchange Commission rules. UTi believes that meaningful analysis of its financial performance requires an understanding of the factors underlying that performance and the company’s judgments about the likelihood that particular factors will repeat. Short-term patterns and long-term trends may be obscured by the impact of certain items. For this reason, the company has referred to revenue and net revenue growth adjusted to exclude the impact of dispositions and acquisitions made since the beginning of the comparative period and the impact of currency fluctuations between comparable periods, and to operating expenses adjusted to exclude purchased transportation costs, certain severance and related charges and the impact of acquisitions made since the beginning of the comparative period and the impact of currency fluctuations between comparable periods. This information is among the information the company uses as a basis for evaluating company performance on a comparable basis over time, allocating resources and planning and forecasting of future periods. The company has also provided this information because such adjustments make performance information more comparable to prior disclosures for investors, and may enhance the ability of investors to analyze the company’s performance. This information is not intended to be considered in isolation or as a substitute for the relevant measures calculated in accordance with U.S. GAAP.

Safe Harbor Statement:

Certain statements in this news release may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company intends that all such statements be subject to the “safe-harbor” provisions contained in those sections. Such statements may include, but are not limited to, the company’s discussion of the macroeconomic environment, its sales efforts and the anticipated impact thereof, yield expectations and the outlook for the future. Many important factors may cause the company’s actual results to differ materially from those discussed in any such forward-looking statements, including but not limited to the global economic slowdown that is adversely affecting trade volumes and the financial condition of many of the company’s customers; planned or unplanned consequences of the company’s sales initiatives, procurement initiatives and business transformation efforts; the demand for the company’s services; the impact of cost reduction measures recently undertaken by the company; the costs and impact of the company’s information technology restructuring plan; integration risks associated with acquisitions; increased competition; the impact of volatile fuel costs; the effects of changes in foreign exchange rates; changes in the company’s effective tax rates; industry consolidation making it more difficult to compete against larger companies; general economic, political and market conditions, including those in Africa, Asia and EMENA; work stoppages or slowdowns or other material interruptions in transportation services; risks of international operations; risks associated with, and costs and expenses the company will incur as a result of, the ongoing publicly announced U.S. Department of Justice and other governmental investigations into the pricing practices of the air cargo transportation industry and other similar or related investigations and lawsuits; the success and effects of new strategies and of the realignment of the company’s executive management structure; disruptions caused by epidemics, conflicts, wars and terrorism; and the other risks and uncertainties described in the company’s filings with the Securities and Exchange Commission. Although UTi believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, the company cannot assure the reader that the results contemplated in forward-looking statements will be realized in the timeframe anticipated or at all. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by UTi or any other person that UTi’s objectives or plans will be achieved. Accordingly, investors are cautioned not to place undue reliance on the company’s forward-looking statements. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

 UTi Worldwide Inc.
 Condensed Consolidated Statements of Income
 (in thousands, except share and per share amounts)

                    Three months ended           Nine months ended
                        October 31,                 October 31,
                --------------------------  --------------------------
                    2009          2008          2009          2008
                ------------  ------------  ------------  ------------
 Revenues:       (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
  Airfreight
   forwarding   $    328,746  $    428,521  $    838,044  $  1,334,035
  Ocean freight
   forwarding        238,333       326,994       635,947       954,453
  Customs
   brokerage          25,231        28,275        68,543        86,932
  Contract
   logistics         175,157       172,913       475,819       515,126
  Distribution       109,549       151,418       312,563       457,124
  Other               90,182       101,986       245,140       301,974
                ------------  ------------  ------------  ------------
    Total
     revenues        967,198     1,210,107     2,576,056     3,649,644
                ------------  ------------  ------------  ------------
 Operating
  expenses:
  Purchased
   transport-
   ation costs:
    Airfreight
     forwarding      254,576       342,076       627,838     1,061,563
    Ocean
     freight
     forwarding      191,431       270,989       506,706       799,433
    Customs
     brokerage         2,283         1,302         4,965         4,857
    Contract
     logistics        31,971        24,309        84,149        70,144
    Distribution      75,094       107,688       210,992       327,761
    Other             50,308        55,581       130,998       172,240

  Staff costs        196,675       211,881       559,141       651,304
  Depreciation
   and
   amortization       11,393        10,727        31,738        31,932
  Amortization
   of intangible
   assets              2,696         3,458         8,145         9,639
  Restructuring
   charges                --            --         1,231         6,036
  Other
   operating
   expenses          119,355       128,252       338,477       393,610
                ------------  ------------  ------------  ------------
    Total
     operating
     expenses        935,782     1,156,263     2,504,380     3,528,519
                ------------  ------------  ------------  ------------
 Operating
  income              31,416        53,844        71,676       121,125
 Interest
  expense, net        (4,154)       (4,091)       (9,905)      (12,689)
 Other income/
  (expense), net         742         1,047          (256)        1,680
                ------------  ------------  ------------  ------------
   Pretax income      28,004        50,800        61,515       110,116
 Provision for
  income taxes         7,537        14,237        17,761        29,692
                ------------  ------------  ------------  ------------
   Income from
    continuing
    operations,
    net of tax        20,467        36,563        43,754        80,424

 Discontinued
  operations:
   Operating
    income, net
    of tax                --            --            --           100
   Gain on sale,
    net of tax            --         2,088            --         7,404
                ------------  ------------  ------------  ------------
    Net income        20,467        38,651        43,754        87,928
 Net income
  attributable
  to non-
  controlling
  interests            2,500           770         4,187         2,759
                ------------  ------------  ------------  ------------
   Net income
    attributable
    to UTi
    Worldwide
    Inc.        $     17,967  $     37,881  $     39,567  $     85,169
                ============  ============  ============  ============

 Basic earnings
  per common
  share
  attributable
  to UTi
  Worldwide Inc.
  common
  shareholders:
   Continuing
    operations  $       0.18  $       0.36  $       0.40  $       0.78
   Discontinued
    operations            --          0.02            --          0.08
                ------------  ------------  ------------  ------------
                $       0.18  $       0.38  $       0.40  $       0.86
                ============  ============  ============  ============
 Diluted
  earnings per
  common share
  attributable
  to UTi
  Worldwide Inc.
  common
  shareholders:
   Continuing
    operations  $       0.18  $       0.36  $       0.39  $       0.77
   Discontinued
    operations            --          0.02            --          0.07
                ------------  ------------  ------------  ------------
                $       0.18  $       0.38  $       0.39  $       0.84
                ============  ============  ============  ============
 Number of
  weighted-
  average common
  shares
  outstanding
  used for per
  share
  calculations:
   Basic
    shares       100,066,261    99,511,519    99,888,487    99,342,654
   Diluted
    shares       101,282,940   100,892,907   101,205,008   100,935,780
 Amounts
  attributable
  to UTi
  Worldwide Inc.
  common
  shareholders:
   Income from
    continuing
    operations,
    net of tax  $     17,967  $     35,793  $     39,567  $     77,665
   Discontinued
    operations:
     Operating
      income,
      net of tax          --            --            --           100
     Gain on
      sale, net
      of tax              --         2,088            --         7,404
                ------------  ------------  ------------  ------------
      Net
       income   $     17,967  $     37,881  $     39,567  $     85,169
                ============  ============  ============  ============

 UTi Worldwide Inc.
 Condensed Consolidated Balance Sheets
 (in thousands)

                                             October 31,   January 31,
                                                2009          2009
                                            ------------  ------------
                                             (Unaudited)

 ASSETS

 Cash and cash equivalents                  $    307,554  $    256,869
 Trade receivables, net                          732,599       645,275
 Deferred income taxes                            23,117        19,192
 Other current assets                            112,919        79,869
                                            ------------  ------------
  Total current assets                         1,176,189     1,001,205

 Property, plant and equipment, net              180,183       163,441
 Goodwill and other intangible assets, net       485,448       442,691
 Investments                                       2,348         2,940
 Deferred income taxes                            20,765        23,831
 Other non-current assets                         20,607        14,578
                                            ------------  ------------
  Total assets                              $  1,885,540  $  1,648,686
                                            ============  ============

 LIABILITIES & EQUITY

 Bank lines of credit                       $     73,548  $     69,978
 Short-term borrowings                             9,682         6,899
 Current portion of long-term borrowings          69,904        66,666
 Current portion of capital lease
  obligations                                     15,936        15,878
 Trade payables and other accrued
  liabilities                                    676,639       593,271
 Income taxes payable                             11,893        10,425
 Deferred income taxes                             1,500         2,493
                                            ------------  ------------
  Total current liabilities                      859,102       765,610

 Long-term borrowings, excluding current
  portion                                        132,688       115,747
 Capital lease obligations, excluding
  current portion                                 22,602        20,754
 Deferred income taxes                            27,377        27,542
 Retirement fund obligations                       8,266         6,947
 Other non-current liabilities                    18,847        19,116

 Commitments and contingencies

 UTi Worldwide Inc. shareholders' equity:
  Common stock                                   458,684       450,553
  Retained earnings                              372,001       338,461
  Accumulated other comprehensive loss           (37,479)     (112,268)
                                            ------------  ------------
   Total UTi Worldwide Inc. shareholders'
    equity                                       793,206       676,746
  Noncontrolling interests                        23,452        16,224
                                            ------------  ------------
   Total equity                                  816,658       692,970
                                            ------------  ------------

   Total liabilities and equity             $  1,885,540  $  1,648,686
                                            ============  ============

 UTi Worldwide Inc.
 Condensed Consolidated Statements of Cash Flows
 (in thousands)

                                                Nine months ended
                                                    October 31,
                                                -----------------
                                                2009          2008
                                            ------------  ------------
                                             (Unaudited)   (Unaudited)

 OPERATING ACTIVITIES:
 Net income                                 $     43,754  $     87,928
 Adjustments to reconcile net income to
  net cash provided by operating
  activities:
   Share-based compensation costs, net             6,354         8,107
   Depreciation and amortization                  31,738        32,157
   Amortization of intangible assets               8,145         9,639
   Deferred income taxes                            (744)           96
   Uncertain tax positions                           256        (1,918)
   Gain on sale of subsidiaries                       --        (7,404)
   Tax benefit relating to share-based
    compensation                                   1,212           868
   Excess tax benefit from share-based
    compensation                                    (130)         (464)
   Gain on disposal of property, plant and
    equipment                                     (6,195)       (1,050)
   Other                                            (171)          801
   Net changes in operating assets and
    liabilities                                  (32,576)      (55,952)
                                            ------------  ------------
     Net cash provided by operating
      activities                                  51,643        72,808

 INVESTING ACTIVITIES:
 Purchases of property, plant and equipment      (21,062)      (39,365)
 Proceeds from disposal of property, plant
  and equipment                                   11,877         2,453
 Proceeds from sale of subsidiary                     --        11,995
 (Increase)/decrease in other non-current
  assets                                            (448)        4,721
 Acquisitions and contingent earn-out
  payments                                        (3,133)      (30,736)
 Other                                               387        (3,735)
                                            ------------  ------------
   Net cash used in investing activities         (12,379)      (54,667)

 FINANCING ACTIVITIES:
 (Decrease)/increase in bank lines of
  credit                                         (20,030)        5,378
 Increase in short-term borrowings                   907           198
 Proceeds from issuance of long-term
  borrowings                                      56,498            --
 Repayment of long-term borrowings               (36,938)         (307)
 Debt issuance costs                              (4,576)           --
 Repayment of capital lease obligations          (17,615)      (18,953)
 Dividends paid to noncontrolling interests         (998)         (567)
 Net proceeds from issuance of ordinary
  shares                                           1,647         4,422
 Excess tax benefit from share-based
  compensation                                       130           464
 Dividends paid                                   (6,027)       (6,141)
                                            ------------  ------------
   Net cash used in financing activities         (27,002)      (15,506)

 Effect of foreign exchange rate changes
  on cash and cash equivalents                    38,423       (44,170)
                                            ------------  ------------
 Net increase/(decrease) in cash and cash
  equivalents                                     50,685       (41,535)
 Cash and cash equivalents at beginning
  of period                                      256,869       289,141
                                            ------------  ------------

 Cash and cash equivalents at end of period $    307,554  $    247,606
                                            ============  ============

 UTi Worldwide Inc.
 Segment Reporting
 (in thousands)
 (Unaudited)

                              Three months ended October 31, 2009
                        ----------------------------------------------

                                     Contract
                                    Logistics
                         Freight       and
                        Forwarding Distribution  Corporate     Total
                        ----------  ----------   ---------     -----

 Revenues               $  642,384  $  324,814  $       --  $  967,198
                        ----------  ----------  ----------  ----------

 Purchased
  transportation
  costs                    485,683     119,980          --     605,663
 Staff costs                89,016     104,114       3,545     196,675
 Depreciation and
  amortization               3,819       7,353         221      11,393
 Amortization of
  intangible assets            963       1,733          --       2,696
 Other operating
  expenses                  41,352      71,100       6,903     119,355
                        ----------  ----------  ----------  ----------
  Total operating
   expenses                620,833     304,280      10,669     935,782
                        ----------  ----------  ----------  ----------

 Operating income/
  (loss)                $   21,551  $   20,534  $  (10,669)     31,416
                        ==========  ==========  ==========
 Interest expense, net                                          (4,154)
 Other income, net                                                 742
                                                            ----------
   Pretax income                                                28,004
 Provision for income
  taxes                                                          7,537
                                                            ----------
   Net income                                                   20,467
 Net income
  attributable to
  noncontrolling
  interests                                                      2,500
                                                            ----------
   Net income
    attributable to
    UTi Worldwide Inc.                                      $   17,967
                                                            ==========

 UTi Worldwide Inc.
 Segment Reporting
 (in thousands)
 (Unaudited)

                              Three months ended October 31, 2008
                        ----------------------------------------------
                                     Contract
                                    Logistics
                         Freight       and
                        Forwarding Distribution  Corporate     Total
                        ----------  ----------   ---------     -----

 Revenues               $  844,813  $  365,294  $       --  $1,210,107
                        ----------  ----------  ----------  ----------

 Purchased
  transportation costs     653,918     148,027          --     801,945
 Staff costs                99,101     110,149       2,631     211,881
 Depreciation and
  amortization               4,213       6,470          44      10,727
 Amortization of
  intangible assets          1,316       2,142          --       3,458
 Other operating
  expenses                  42,424      82,235       3,593     128,252
                        ----------  ----------  ----------  ----------
   Total operating
    expenses               800,972     349,023       6,268   1,156,263
                        ----------  ----------  ----------  ----------

   Operating income/
   (loss)               $   43,841  $   16,271  $   (6,268)     53,844
                        ==========  ==========  ==========
 Interest expense, net                                          (4,091)
 Other income, net                                               1,047
                                                            ----------
   Pretax income                                                50,800
 Provision for income
  taxes                                                         14,237
                                                            ----------
   Income from
    continuing
    operations,
    net of tax                                                  36,563
 Gain on sale of
  discontinued
  operations,
  net of tax                                                     2,088
                                                            ----------
   Net income                                                   38,651
 Net income
  attributable to
  noncontrolling
  interests                                                        770
                                                            ----------
   Net income
    attributable to
    UTi Worldwide Inc.                                      $   37,881
                                                            ==========

 UTi Worldwide Inc.
 Segment Reporting
 (in thousands)
 (Unaudited)

                             Nine months ended October 31, 2009
                        ----------------------------------------------
                                     Contract
                                    Logistics
                         Freight       and
                        Forwarding Distribution  Corporate     Total
                        ----------  ----------   ---------     -----

 Revenues               $1,675,338  $  900,718  $       --  $2,576,056
                        ----------  ----------  ----------  ----------

 Purchased
  transportation costs   1,235,306     330,342          --   1,565,648
 Staff costs               255,318     293,129      10,694     559,141
 Depreciation and
  amortization              11,168      20,145         425      31,738
 Amortization of
  intangible assets          2,776       5,369          --       8,145
 Restructuring charges          --          --       1,231       1,231
 Other operating
  expenses                 117,530     207,994      12,953     338,477
                        ----------  ----------  ----------  ----------
   Total operating
    expenses             1,622,098     856,979      25,303   2,504,380
                        ----------  ----------  ----------  ----------

 Operating income/
  (loss)                $   53,240  $   43,739  $  (25,303)     71,676
                        ==========  ==========  ==========
 Interest expense, net                                          (9,905)
 Other expense, net                                               (256)
                                                            ----------
   Pretax income                                                61,515
 Provision for income
  taxes                                                         17,761
                                                            ----------
   Net income                                                   43,754
 Net income
  attributable to
  noncontrolling
  interests                                                      4,187
                                                            ----------
   Net income
    attributable to
    UTi Worldwide Inc.                                      $   39,567
                                                            ==========

 UTi Worldwide Inc.
 Segment Reporting
 (in thousands)
 (Unaudited)

                              Nine months ended October 31, 2008
                        ----------------------------------------------

                                     Contract
                                    Logistics
                         Freight       and
                        Forwarding Distribution  Corporate     Total
                        ----------  ----------   ---------     -----

 Revenues               $2,547,142  $1,102,502  $       --  $3,649,644
                        ----------  ----------  ----------  ----------

 Purchased
  transportation costs   1,986,297     449,701          --   2,435,998
 Staff costs               301,161     342,822       7,321     651,304
 Depreciation and
  amortization              11,928      19,793         211      31,932
 Amortization of
  intangible assets          3,006       6,633          --       9,639
 Restructuring charges       2,382       3,654          --       6,036
 Other operating
  expenses                 131,704     248,592      13,314     393,610
                        ----------  ----------  ----------  ----------
   Total operating
    expenses             2,436,478   1,071,195      20,846   3,528,519
                        ----------  ----------  ----------  ----------
   Operating income/
    (loss)              $  110,664  $   31,307  $  (20,846)    121,125
                        ==========  ==========  ==========
 Interest expense, net                                         (12,689)
 Other income, net                                               1,680
                                                            ----------
   Pretax income                                               110,116
 Provision for income
  taxes                                                         29,692
                                                            ----------
   Income from
    continuing
    operations,
    net of tax                                                  80,424
 Discontinued
  operations:
   Operating income,
    net of tax                                                     100
   Gain on sale,
    net of tax                                                   7,404
                                                            ----------
    Net income                                                  87,928
 Net income
  attributable to
  noncontrolling
  interests                                                      2,759
                                                            ----------
  Net income
   attributable to
   UTi Worldwide Inc.                                       $   85,169
                                                            ==========

 UTi Worldwide Inc.
 Geographic Reporting
 (in thousands)
 (Unaudited)

                       Three months ended October 31, 2009
                       -----------------------------------

                                                Contract
                         Contract              Logistics
                         Logistics                and
                            and      Freight    Distri-
               Freight    Distri-  Forwarding   bution    Operating
             Forwarding   bution       Net        Net      Income/
               Revenue    Revenue    Revenue    Revenue     (Loss)
              --------   ---------  ---------  ---------  ---------

 EMENA        $215,812   $  64,733  $  59,226  $  41,154  $   1,807
 Americas      129,963     173,378     38,038     97,809     10,838
 Asia Pacific  210,992       9,071     35,851      6,315      9,083
 Africa         85,617      77,632     23,586     59,556     20,357
 Corporate          --          --         --         --    (10,669)
              --------   ---------  ---------  ---------  ---------
  Total       $642,384   $ 324,814  $ 156,701  $ 204,834  $  31,416
              ========   =========  =========  =========  =========

                       Three months ended October 31, 2008
                       -----------------------------------

                                                Contract
                         Contract              Logistics
                         Logistics                and
                            and      Freight    Distri-
               Freight    Distri-  Forwarding   bution    Operating
             Forwarding   bution       Net        Net      Income/
               Revenue    Revenue    Revenue    Revenue     (Loss)
              --------   ---------  ---------  ---------  ---------

  EMENA       $284,813   $  62,985  $  73,542  $  42,080  $  10,646
  Americas     171,385     214,768     44,609    112,639     19,557
  Asia Pacific 289,690       9,723     46,515      6,070     14,882
  Africa        98,925      77,818     26,229     56,478     15,027
  Corporate         --          --         --         --     (6,268)
              --------   ---------  ---------  ---------  ---------
   Total      $844,813   $ 365,294  $ 190,895  $ 217,267  $  53,844
              ========   =========  =========  =========  =========

 UTi Worldwide Inc.
 Geographic Reporting
 (in thousands)
 (Unaudited)

                         Nine months ended October 31, 2009
                      ---------------------------------------

                      Contract            Contract
                      Logistics           Logistics
                         and     Freight     and
             Freight  Distribu-  Forward- Distribu- Operating Restruct-
           Forwarding   tion     ing Net  tion Net   Income/    uring
             Revenue   Revenue   Revenue   Revenue   (Loss)    Charges
           ---------- --------- --------- --------- --------- ---------

 EMENA     $  602,560 $ 178,283 $ 169,152 $ 116,464 $   3,031 $      --
 Americas     349,674   482,762   107,398   270,729    18,396        --
 Asia
  Pacific     517,472    25,859   105,349    18,114    28,203        --
 Africa       205,632   213,814    58,133   165,069    47,349        --
 Corporate         --        --        --        --   (25,303)    1,231
           ---------- --------- --------- --------- --------- ---------
  Total    $1,675,338 $ 900,718 $ 440,032 $ 570,376 $  71,676 $   1,231
           ========== ========= ========= ========= ========= =========

                         Nine months ended October 31, 2008
                      ---------------------------------------

                      Contract            Contract
                      Logistics           Logistics
                         and     Freight     and
             Freight  Distribu-  Forward- Distribu- Operating Restruct-
           Forwarding   tion     ing Net  tion Net   Income/    uring
             Revenue   Revenue   Revenue   Revenue   (Loss)    Charges
           ---------- ---------- -------- --------- --------- ---------

 EMENA     $  878,102 $  201,390 $223,826 $ 127,076 $  30,652 $   1,558
 Americas     502,930    644,148  129,837   342,897    40,286     3,769
 Asia
  Pacific     870,480     26,516  133,798    17,018    38,683       240
 Africa       295,630    230,448   73,384   165,810    32,350       469
 Corporate         --         --       --        --   (20,846)       --
           ---------- ---------- -------- --------- --------- ---------
  Total    $2,547,142 $1,102,502 $560,845 $ 652,801 $ 121,125 $   6,036
           ========== ========= ========= ========= ========= =========

 UTi Worldwide Inc.
 Revenue Growth Reconciliation
 (in thousands)
 (Unaudited)

 Set forth below is a reconciliation of our organic growth in our
 revenues and net revenues over the corresponding prior-year period.

                                REVENUES           NET REVENUES
                              ------------         ------------
 Three months ended
  October 31, 2008            $  1,210,107         $    408,162
 Add: Acquisitions impact (1)        9,909                5,279
 Add: Currency impact (2)            5,528                3,138
 Organic growth                   (258,346) (21)%       (55,044) (13)%
                              ------------  =====  ------------  =====
 Three months ended
  October 31, 2009            $    967,198         $    361,535
                              ============         ============

 (1) Relates to revenues in the current period for businesses acquired
     from August 2008.

 (2) Represents the fluctuations in foreign currency exchange rates
     when balances are translated into U.S. dollars.

 UTi Worldwide Inc.
 Revenue Growth Reconciliation
 (in thousands)
 (Unaudited)

 Set forth below is a reconciliation of our organic growth in our
 revenues and net revenues over the corresponding prior-year period.

                                REVENUES           NET REVENUES
                              ------------         ------------
 Nine months ended
  October 31, 2008            $  3,649,644         $  1,213,646
 Add: Acquisitions impact (1)       26,674               14,448
 Less: Dispositions impact (2)     (22,545)             (22,082)
 Less: Currency impact (3)        (160,299)             (67,156)
 Organic growth                   (917,418) (25)%      (128,448) (11)%
                              ------------  =====  ------------  =====

 Nine months ended
  October 31, 2009            $  2,576,056         $  1,010,408
                              ============         ============

 (1) Relates to revenues in the current period for businesses acquired
     from February 2008.

 (2) Relates to revenues in the corresponding prior period for
     businesses exited through the Company's previously announced
     cost reduction plans.

 (3) Represents the fluctuations in foreign currency exchange rates
     when balances are translated into U.S. dollars.

 UTi Worldwide Inc.
 Operating Expenses Reconciliation
 (in thousands)
 (Unaudited)

 Set forth below is a reconciliation of our fiscal 2010 operating
 expenses in comparison to our adjusted fourth quarter fiscal year 2009
 operating expenses:

                                 Three months ended   Nine months ended
                                  October 31, 2009    October 31, 2009
                                  ----------------    ----------------

 Total operating expenses            $     935,782       $   2,504,380
 Less: Purchased transportation
  costs                                   (605,663)         (1,565,648)
                                  ----------------    ----------------
   Subtotal                                330,119             938,732

 Less: Acquisition impact                   (4,999)            (13,560)
 Less: Severance, restructure
  and other charges                         (2,530)            (11,599)
 Add: Gain on sale of property                  --               6,271
 Less: Currency impact                     (26,987)            (40,739)
                                  ----------------    ----------------
   Adjusted operating expenses       $     295,603        $    879,105
                                  ================    ================

                                 Three months ended
                                  January 31, 2009
                                  ----------------

 Total operating expenses            $     991,904
 Less: Purchased transportation
  costs                                   (561,379)
                                  ----------------
   Subtotal                                430,525

 Less: Severance, restructure
  and other charges                        (14,576)
 Less: Goodwill impairment                (109,941)
                                  ----------------
   Adjusted operating expenses       $     306,008       $     918,024*
                                  ================    ================

 Savings over fourth quarter
  fiscal year 2009 operating
  expenses                           $      10,405       $      38,919
                                  ================    ================

 * This amount represents the adjusted operating expenses for the
   three months ended January 31, 2009 applied over a nine month
   period.
CONTACT:  UTi Worldwide Inc.
          Jeff Misakian, Vice President, Investor Relations
          (562) 552-9417
          jmisakian@go2uti.com
Thursday, December 3rd, 2009 Uncategorized
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