Expeditors Net Income Falls 9% on Lagging Freight Volume, Profitability
Expeditors International of Washington Inc. reported net income fell 9% to $96.6 million, or 53 cents per share, as air and ocean freight forwarding shipments and profitability declined.
The company, which ranks No. 5 on the Transport Topics Top 50 list of the largest logistics companies in the United States, Canada and Mexico, reported revenue fell 15% to $1.42 billion from the first quarter of last year, when revenue reached $1.68 billion and earnings were $106.7 million, or 55 cents.
The results reflected a 3% decline in ocean freight volume and a 9% drop in airfreight business.
Net revenue, or the amount left after paying for transportation, fell nearly 30% on ocean business and almost 25% on air freight, signaling a weaker rate environment. Net revenue from the customs brokerage business was little changed.
“We knew that comparing our 2016 results to our record year in 2015 would be challenging, especially when considering the current headwinds from slowing global trade,” CEO Jeffrey Musser said in a statement. “In Q1 2015, we delivered solutions to customers who navigated around and through issues in the U.S. West Coast ports, and Q1 2016 we worked with carriers to adjust pricing in oversupplied air and ocean markets.”
