C.H. Robinson 3rd quarter profit up 12%
Third-party logistics firm C.H. Robinson Worldwide Tuesday reported improved third quarter earnings for all five of the firm's transportation divisions as increased demand offset margins hit by higher fuel prices.
The Eden Prairie, Minn.-based firm said net income increased 11.7 percent to $93.56 million, compared to $83.74 million in the third quarter of 2007.
Operating income during the quarter was up 12.7 percent to $148.62 million, compared to $131.83 million in the year-ago period. Revenue increased 24.2 percent to $2.32 billion from $1.87 billion.
The firm’s overall transportation gross profit margin fell to 15.9 percent from 18 percent.
Across the individual transportation divisions, gross profit for the firm's trucking segment increased 9.9 percent in the third quarter, on volume increases of about 9 percent. Truckload rates, including fuel, rose about 17 percent. Excluding the impacts of fuel, underlying line-haul rates increased about 3 percent. Truckload margins declined primarily due to higher fuel prices and an increase in the cost of capacity.
The firm's intermodal division reported gross profit of 20.8 percent, driven by volume growth and offset by a decline in gross profit margins due to higher fuel prices.
C.H. Robinson's ocean transportation division reported gross profit up 48.5 percent, driven by volume increases and margin expansion. The acquisition of Transera International Holdings Ltd. on Aug. 1 contributed about 20 percent to the overall increase.
The firm's air transportation division reported gross profit increased 22.9 percent in the third quarter, driven up by increased volumes and margins. The Transera acquisition contributed about 11 percent to the overall increase.
Shares of the company fell $2.07, or 4.9 percent, to close at $40.07.