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Delivery Technology Solutions Inc’s, (DTSL.PK) subsidiary Universal Delivery Solutions creates the ultimate customer delivery service by branding a One-Number Ordering solution and providing Online Ordering services, as well. Universal Delivery Solutions , a wholly-owned subsidiary of Delivery Technology Solutions, Inc., fully supports its clients with One -Number Branding (i.e. 888-SUB-TO-GO), One-Number Implementation, One-Number Integration, Online Ordering Integration and Marketing & Promotion Support.
In July, Delivery Technology Solutions reported an executed National Vendor Agreement with Doctor’s Associates, Inc. (DAI) the franchisor of SUBWAY(R) Restaurants. The agreement authorizes the introduction of 888-SUB-TO-GO Catering & Delivery services as an optional program for the company. It also allows UDS to explore national catering opportunities amongst large corporations and organizations for consideration by DAI.
The National Catering & Event Management services agreement between Universal Delivery Solutions and Doctor’s Associates, Inc. enables Universal Delivery Solutions to offer Universal Delivery Solutions ‘ corporate catering technology on a private brand basis to all corporate clients, including large organizations and institutions. This technology platform allows clients to easily order and manage catering events at multiple venues serving thousands of meals, and prepare reports detailing every event, from their desktop or laptop. Delivery Technology Solutions also has entered into a catering agreement with one of the largest movie chain of 1400 theaters.
Delivery Technology Solutions, Inc., which wholly owns Universal Delivery Solutions, Inc, is the leader in providing comprehensive custom-developed catering/delivery solutions to industries throughout North America, including restaurants, retail and others. Delivery Technology Solutions’ solutions offer a seamless system that integrates Customer Relationship Management (CRM) and Call Center IT services through a proprietary technology backbone to offer convenience, consistent quality, flexibility, accountability and value for consumers and companies.
Boeing (NYSE:BA) forecasts that air carriers in North America will take delivery of about 7,200 new airplanes over the next 20 years at an investment of $700 billion. New airplane deliveries in Canada and the United States will be driven largely by the need to retire older, less fuel-efficient single-aisle airplanes and regional jets, as airlines replace them with new-generation, more fuel-efficient models. (For the purposes of the Boeing forecast, the North America market consists of the U.S. and Canada. Mexico is included in Boeing’s forecast for Latin America.)
“North America is a large, mature market, and we expect passenger traffic for the region to grow at a modest rate of 3.4 percent,” said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes, who released Boeing’s 2010 North America market outlook in Montreal. “The fast-paced lifestyles in Canada and the U.S. require rapid, frequent and reliable coast-to-coast and interregional transportation. Driven by this demand, nearly three-quarters of the new deliveries over the next 20 years will be single-aisle airplanes.”
Taking retirements of airplanes into account, the North America fleet will grow from 6,590 airplanes today to about 9,000 airplanes by 2029. Boeing forecasts that single-aisle airplanes will grow from 56 percent of the total North America fleet today to 71 percent of the fleet by 2029. Airlines are increasingly focusing on airplane age as fuel-thirsty, older airplanes weigh increasingly on earnings. Increased attention to aviation’s impact on global climate change also will be a factor in selecting airplanes that produce lower carbon emissions. Newer airplane types such as the Next-Generation 737 offer significant advantages in environmental performance as well as improved capabilities, fuel efficiency and maintenance costs.
“After several years of losses among the region’s air carriers, we’re seeing signs of improvement and airlines are beginning to implement fleet renewal plans as they look to the future,” Tinseth said. “To help meet this demand, Boeing Commercial Airplanes will continue to work closely with our more than 500 suppliers and partners in Canada. Boeing imports parts and services from Canada amounting to more than a billion U.S. dollars a year, more than $625 million of which is associated with Boeing Commercial Airplanes.”
Twin-aisle fleets will evolve in the region as airlines continue to expand international point-to-point services to a wider range of airport pairs and frequencies. Small- and mid-sized twin-aisle airplanes will grow to represent 19 percent of the North America fleet by 2029. Within the North America market, Boeing sees a demand for 1,180 new, efficient twin-aisle airplanes such as the 787 Dreamliner. Twin-aisles will account for only 16 percent of total airplane demand in the region over 20 years but will have a proportionally higher share of delivery cost, at 37 percent of the overall investment. Large airplanes (747-size and larger) will not see significant demand in North America, with only about 40 units (all freighters), or one percent of the total investment. Boeing also forecasts declining demand for regional jets in North America as airlines shift to more fuel-efficient turboprops or larger jetliner models. High fuel prices, intensified competition and the superior efficiencies of larger single-aisles will take a toll on the economics of small regional jets. This category will account for just 4 percent of the total investment for new airplanes, with only 800 new regional jet deliveries over the next 20 years, nearly all for replacement.
UTi Worldwide Inc. (Nasdaq:UTIW) yesterday reported financial results for its fiscal 2011 second quarter ended July 31, 2010. Fiscal Second Quarter 2011 vs. 2010 Results: Revenues were $1,151.1 million, an increase of 37 percent from $840.5 million; Net revenues (revenues minus purchased transportation costs) were $379.1 million, an increase of 12 percent from $339.4 million; Operating income was $33.9 million, an increase of 51 percent from $22.4 million; and Net income attributable to UTi Worldwide Inc. was $18.9 million, or $0.19 per diluted share, compared to $11.8 million, or $0.12 per diluted share.
Eric W. Kirchner, chief executive officer, said, “Our improved results were primarily driven by strong volumes and better operating margins. Airfreight and ocean freight volumes continued to grow faster than the market and were higher than volumes recorded in the second quarter two years ago, prior to the financial crisis. Results remain tempered by yield pressure due to continued high transportation rates, and we expect these rates to remain volatile on many trade lanes for the rest of the year. We are also expecting volume growth to moderate during the second half of the year due to a slowing global economy and more difficult comparisons to the prior year. We continue to be encouraged by improvements in our contract logistics and distribution business, which reported solid revenue growth and higher operating margins. Client volumes improved in the quarter, particularly in retail and consumer markets, and we continue to manage our operations more efficiently. Our transformation initiatives remain on schedule and we are making good progress in all areas.”
Revenues increased 37 percent in the 2011 fiscal second quarter compared to the prior-year second quarter primarily due to the higher airfreight and ocean freight volumes. Net revenues increased 12 percent, less than the revenue increase, principally because of yield pressure. On an organic, constant currency basis, adjusted net revenues increased 11 percent compared to the second quarter last year. Operating expenses in the second quarter of fiscal 2011, excluding purchased transportation costs, were $345.2 million, an increase of nine percent compared to the same period last year. The increase primarily reflects expenses associated with revenue growth. On an organic, constant currency basis, operating expenses in the fiscal 2011 second quarter were eight percent higher than the same period last year, less than the net revenue increase. Operating expenses in the fiscal 2010 second quarter included severance and restructuring charges totaling $2.7 million.
UTi Worldwide Inc. reported operating income in the fiscal 2011 second quarter of $33.9 million, which represented 8.9 percent of net revenues. This compares to operating income in the year-ago second quarter of $22.4 million, or 6.6 percent of net revenues. The operating income and margin increases reflect the higher volumes in freight forwarding and contract logistics, which were somewhat offset by lower yields in freight forwarding and distribution operations. The substantial increase in volumes and carrier rates during the first six months of fiscal 2011 necessitated significant additional working capital to fund duties and carrier costs on behalf of clients. Consequently, UTi Worldwide Inc. used cash in operations totaling $48.5 million in the six months ended July 31, 2010, compared to cash provided by operations of $66.3 million in the same period last year.
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. UTi Worldwide Inc. 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. UTi Worldwide Inc. 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.
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