UTi Worldwide Inc, a logistics service provider is now facing a fresh problem as it attempts to return towards growth, considering the unexpected resignation of its Chief Executive Officer, Eric Kirchner (CEO) on Monday.
On Tuesday, the company reported its biggest percentage drop within the 10 months after posting its 8th-straight quarterly loss.
The company, which acts a broker between freight companies and shippers, did not disclose any reason for the resignation of its CEO, who was with UTi for six years. Other company officials rejected to answer further questions about his departure during a call with analysts.
John Barnes, an analyst from RBC Capital Markets thought Kirchner’s resignation during a critical moment might bring about questions about UTi’s ability to return to progress and reduce costs related to its implementation of a new billing and service platform.
UTi has lagged the wider logistics market in the United States this year, boosting the results of its rivals like XPO Logistics Inc, C.H. Robinson Worldwide Inc, and the Expeditors International of Washington Inc.
Analysts had an average forecast of a 1 % drop in revenue in UTi this year ending January.
On Tuesday, Edward Feitzinger, UTi’s new CEO said the company’s recent service problems were significantly behind it, however, did not indicate if his company’s revenue would recover in the next quarters.