Expeditors warns 3Q earnings could undershoot forecast
Expeditors International warned that its results for the third quarter would likely fall short of the current market expectations. The company predicted third-quarter earnings this year within the range of $.28 to $.30 per share, as compared with consensus market forecasts of $.33 per share.
In the third quarter of 2002, Expeditors had earnings of $.28 per share.
“While July 2003 was encouraging, August 2003 was frankly a disappointment on a year over year comparison,” said Peter J. Rose, chairman and chief executive officer of Expeditors. “We were faced with compressed airfreight margins and relatively diminished airfreight tonnage out of Asia which more than offset the positive gains we continued to experience in ocean,” he explained.
While admitting that a single month rarely determines the quarter, Rose said that recent trends in the Asia airfreight market makes the company believe that September 2003 results “are
unlikely to put $.33 per share within reach.”
Expeditors would not forecast fourth quarter 2003 estimates, saying it is much too early to say anything meaningful.
Headquartered in Seattle, Expeditors provides air and ocean freight forwarding, vendor consolidation, customs clearance, marine insurance, distribution and other international logistics services.