Logistics company CWT reported a nine per cent drop in third-quarter net profit to US4.9 million, from $5.36 million a year earlier, despite revenue surging 23 per cent, reported Business Times Singapore.

"The increase in revenue from rising freight rates since the second half of 2009 was negated by rising freight costs," mainboard-listed CWT said.

Other factors, such as the phasing out of government support schemes, start-up costs for new investments in Europe and new accounts, as well as a dive in the steel logistics business, also caused the fall.

But analysts were not shaken, maintaining a good outlook on the firm.

Currently, CWT Limited is boosting its operations in Amsterdam and Indonesia.

For the third quarter ended September 30, revenue rose to $149.77 million, from $124.28 million a year back. And gross profit margin rose to 13.2 per cent, from 12.5 per cent in the previous corresponding quarter.

CWT attributed the growth to higher business volumes for freight logistics, which included contributions from new offices in Slovenia and Portugal and more contracts from new customers.