The US forwarder UTi Worldwide is reporting a continuing softening of the North American and Pacific logistics markets and has revised down its growth projections for the next twelve months.

Outlining half yearly gross revenues up 20% to $2billion and net earnings up 22% at $702million on the same period last year, operating profits were depressed by exceptionals relating to the acquisition of Gruppo SLi. The latter however has flattered the revenue growth figures.

The company's contract logistics business has been the most significant driver of growth, with its air and sea freight business growing more modestly. Contract logistics is apparently benefiting from the acquisition of Span last year.

Roger MacFarlane, CEO of UTi commented; "Most areas of our business showed progress in the second quarter as we focused on managing costs while continuing to grow revenue across multiple business lines. We are pleased with our operating margin improvement from the first quarter of this year, particularly given the tougher growth environment in the China to North America trade lane. In addition to actions

already taken, we further tightened cost management processes and controls. Improving operating margins remains a top priority"

Results in the second quarter showed only a marginal slow-down of a couple of percentage point in gross revenue and net income, however the company is predicting a reduced projection of income equivalent to a reduction of 7 cents at the top end from previous guidance of $1.22.