Earnings Roundup: C.H. Robinson, ArcBest, Roadrunner, Hub Group, Universal Truckload Services
Improved profit margins produced 12% higher fourth-quarter earnings at broker C.H. Robinson Worldwide Inc. and logistics company Hub Group, where net income rose 37%.
However, ArcBest Corp. net income declined more than 50% in the period as less-than-truckload results were hurt by a weaker economy, and profits fell 2% at Roadrunner Transportation Systems.
C.H. Robinson, the No. 4 company on the Transport Topics Top 50 list of the largest logistics companies in North America, increased net income to $126.6 million, or 88 cents per share, as profits from truckload and less-than-truckload brokerage improved. ArcBest, No. 12 on TT’s Top 100 list of the largest U.S. and Canadian for-hire carriers, reported net income of $5 million, or 19 cents, down from $14.5 million, or 53 cents.
No. 8 Hub net income rose to $22.4 million, or 63 cents. Roadrunner, No. 17, saw net income drop 2% to $12.1 million, or 32 cents.
Minneapolis-based C.H. Robinson improved net revenue, the amount left after paying transport costs, by 13% in truckload, the largest line of business, and 41% in the LTL brokerage segment. Revenue fell 4% to $3.21 billion.
Truckload, accounting for more than 60% of net revenue, was helped by a 5% decline of trucking costs that was greater than the 3% lower rates paid by shippers for the quarter. Net revenue at Robinson declined in the smaller intermodal, air, ocean and customs units that account for less than 20% of transport net revenue.
Hub Group based in Oak Brook, Illinois, reported that profit margins improved at both the larger Hub unit and the smaller Mode unit to 13% from less than 10%. Operating income rose nearly 50% at the Hub unit and more than 20% for the Mode business. Revenue for the company was 3% lower at $890.3 million.
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