Expeditors International of Washington Reports 1.5% Drop in Profits
Logistics provider Expeditors International of Washington reported second-quarter profits fell 1.5% compared to the same period last year due to lower yields from airfreight and ocean freight operations.
The Seattle-based logistics provider reported a net income of $116.1 million, or 63 cents per share, down from $117.8 million a year ago. Operating income, or earnings before taxes and interest, dropped 2% to $178.8 million.
Revenue fell 13% from $1.69 billion to $1.48 billion, although net revenue, or the amount after purchased transportation costs and other logistical services, remained relatively unchanged year-over-year.
Airfreight tonnage handled increased 2%, but lower market rates resulted in net revenue falling 4% to $178.7 million. Ocean container volume decreased 1% year-over-year, resulting in net revenue dropping 2% to $141 million. Customs brokerage net revenue was up 5% to $233.4 million.
Expeditors ranks No. 5 on the Transport Topics Top 50 list of the largest logistics companies in the United States, Canada and Mexico.
“The global economic environment remains uncertain, particularly in Europe, and trade continues to slow. Despite these conditions, we continue to gain new customers and expand our market share,” CEO Jeffrey Musser said in an Aug. 2 statement.
Business also slowed in the United States relative to the same period in 2015, with net revenue dropping 2% from $68.5 million to $67.2 million. Net revenue declined 24% year-over-year in Europe but increased 4% in the Asia Pacific.
Earnings were 4 cents higher than estimates from analysts, as compiled by Bloomberg News. But the company fell short of the estimated $1.53 billion in revenue.
The operating ratio improved to 87.9 from 89.2 year-over-year.
