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UTi Worldwide Provides Long-Term Financial Goals for Transformation Activities

/ Source: GlobeNewswire

LONG BEACH, Calif., June 23, 2011 (GLOBE NEWSWIRE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today will provide investors and securities analysts with details of its CLIENTasONE business strategy, operations, transformation activities and financial performance. This discussion will take place at the company's investor day, which begins today at 10:30 a.m. EDT, and which is being hosted at the NASDAQ MarketSite in New York City.

Included in the discussion of UTi's transformation activities will be the following financial goals:

  • Cost savings of $75-95 million per year, a portion of which begins in fiscal 2013 and increases each successive year until the full annual goal is achieved in fiscal 2016.
  • Capital expenditures of $95-100 million in total.
  • Operating expenses of $25-30 million per year. These expenses include annual depreciation of $20 million over five years and are expected to commence midway through fiscal 2013.
  • Operating margin in the range of 12-13 percent no later than fiscal 2015.
  • Earnings per share growth at a compounded annual rate of 15-20 percent from fiscal 2012 to fiscal 2017.

The transformation is designed to generate significant benefits through efficiency gains, regardless of possible growth in revenue and net revenue. The ranges within the goals above assume no growth to modest above-market growth in net revenue throughout the transformation. Yields were assumed to be constant with those in fiscal 2011. In addition, the goals outlined above do not include costs associated with potential severance obligations that are expected to be incurred throughout the transformation. 

Eric W. Kirchner, chief executive officer, said, "Through our CLIENTasONE initiative, we are transforming UTi's business in order to consistently exceed client expectations, while providing a rewarding workplace for our employees and driving increased shareholder value. Our '1 Focus,' '1 Team' and '1 World' objectives are designed to result in a better client experience, more consistent global processes, systems and structure, and predictable and proactive operational excellence on a global basis."

UTi's Investor Day presentations and accompanying slides can be accessed through a live Internet broadcast at the Investor Relations section of the company's website at . The event will be archived on UTi's website for one year.

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.

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 forward-looking statements may include, but are not limited to, statements about the goals of UTi's transformation activities, including statements about the expected cost savings and benefits, expenses, capital expenditures, operating margin, earnings per share growth, efficiency gains and increased shareholder value, as well as statements about future client experiences, the consistency of global processes, systems and structures and operational excellence. Such forward-looking statements also include comments about the potential costs for severance as well as the timing for each of the above items and any other statements not of a historical fact. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements and result in the company not achieving the goals discussed above, including, but not limited to, net revenue growth rates or yields at levels different from those assumed in determining the company's goals set forth above, the economic volatility that has materially impacted trade volumes, transportation capacity, pricing dynamics and overall margins; unexpected difficulties and delays in the implementation of the transformation activities which can result in delays or reductions in expected cost savings, inefficiencies, increased costs and other adverse consequences; actual costs and expenditures exceeding estimates; the financial condition of many of the company's customers; planned or unplanned consequences of the company's initiatives and business transformation efforts; changes in the demand for the company's services; the impacts and related costs associated with the transformation and reorganization efforts and related measures undertaken by the company; increased competition; the impact of volatile fuel costs and 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; disruptions caused by epidemics, natural disasters, conflicts, wars and terrorism; and the other risks and uncertainties described in "Risk Factors" and "Forward-looking Statements" in the company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and described in the company's other 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. UTi also warns that forward-looking statements concerning its goals for its transformation activities do not constitute projections about the company's future performance and 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.

CONTACT: Jeff Misakian Vice President, Investor Relations (562) 552-9417