CWT, the provider of integrated logistics solutions, today announced a net profit attributable to owners of $5.5 million for the three months ended 30 September 2010 (3QFY10), which is slightly lower than the $ 6.0 million recorded in 3QFY09.

For the quarter under review, the group recorded revenue of $192.7 million, up 23% from $156.9 million in 3QFY09 on the back of higher business volumes transacted under Freight Logistics, including maiden contribution from its newly established offices in Slovenia and Portugal. In addition to that, its Contract Logistics arm successfully secured new customer wins, further contributing to the top line performance for 3QFY10.

In terms of profitability, gross profit increased from $19.7 million to $25.5 million, which was in line with the growth in revenue. Backed by efficient cost management, gross profit margin improved to 13.2% (3QFY09: 12.5%).

But the group incurred higher business development costs and startup costs for its recent operations in Europe, which led to higher administrative expenses at $16.9 million. Coupled with the impact of increasing freight rates and slower demand from its Steel Logistics business and the absence of non-recurring items totalling $2.6 million, CWT reported lower net earnings.

As at 30 September 2010, the group maintains a strong net cash position of $188.1 million, representing a net asset value per ordinary share of 75.6 cents.