Shares of UTi Worldwide dropped 9 percent after the logistics company’s fourth-quarter profit didn’t meet analyst forecasts.

The Long Beach company reported net income of $1.5 million (2 cents per share), compared to a net loss of $89.8 million (90 cents) a year ago. Analysts surveyed by Thomson Reuters were expecting earnings of 16 cents per share.

The company said rising diesel costs ate into earnings despite a pickup in business.

“Financial results in the fourth quarter were severely affected by sharply higher transportation costs … which more than offset a significant increase in volumes,” said Chief Executive Eric Kirchner said in a statement.

Kirchner noted that logistics companies are unable to quickly raise shipping rates to match quickly rising fuel costs. However, he expects the higher shipping costs to stabilize, allowing UTi to pass the increases on to clients.

Shares of UTi lost $1.50, or 9 percent, to $15.59 in mid-day trading on the Nasdaq.