Expeditors Boosts Net Income 11%
Expeditors International of Washington Inc. said third-quarter net income rose 11% to $102.4 million, or 53 cents per share, from $92.4 million, or 45 cents, as demand and pricing improved for air and ocean freight.
The Seattle-based company reported revenue also rose 11%, improving to $1.71 billion from $1.54 billion. Net revenue, or the amount left over after purchased transportation costs, was 6% higher at 513.3 million.
“Double-digit growth in both air and ocean freight volumes, something we’ve not seen since the fourth quarter of 2010, resulted in double-digit revenue growth and drove double-digit net income growth,” CEO Jeffrey Musser said, citing greater pricing improvement in the ocean freight business. “We experienced strong operating income growth in both the United States and Europe regions, which again compensated for relative weakness in the Asia Pacific and Middle East and India regions.”
Revenue rose 9% for airfreight, 14% in the ocean sector and 9% for customs brokerage and related services.
The company didn’t offer a forecast.
Musser said “As we’ve said for years, trying to predict trends in these very fast-changing air and ocean freight markets is futile.”
