C.H. Robinson Q3 Profit Declines On Costs

(RTTNews) - Transportation and logistics company C.H. Robinson Worldwide Inc. (CHRW), Tuesday reported a decline in profit for the third quarter, hurt largely by increase in expenses that offset strong growth in revenues. Earnings for the quarter came in short of Wall Street estimates, but revenues trumped expectations.

Eden Prairie, Minnesota-based C.H. Robinson's third-quarter profit dropped to $107.7 million or $0.69 per share from $116.3 million or $0.72 per share last year. On average, 28 analysts polled by Thomson Reuters expected earnings of $0.73 per share for the quarter. Analysts' estimates typically exclude one-time items.

C.H. Robinson's revenues for the quarter grew 15.1 percent to $3.32 billion from $2.88 billion last year. Analysts estimated revenues of $3.23 billion for the quarter.

Trucking revenues, which constitute majority of the revenues, dropped 1.3 percent, with margins dropping due to increased cost per mile.

Revenue growth primarily reflects strong performance at ocean, air and customs divisions, with revenues up 168.6 percent, 100.5 percent, and 117.4 percent, respectively. The increases primarily reflect the company's November acquisition of Phoenix.

Total operating costs for the quarter rose to 16.9 percent from $287.0 million from $245.4 million last year. Higher expenses was a result of an increase in headcount, including the impact of the Apreo and Phoenix acquisitions, and the amortization of acquisition-related intangible assets.

CHRW closed Tuesday's trading at $60.93, down $0.80 or 1.30%, on the Nasdaq. The stock further gained $0.93 or 1.53% in after hours trade.