C.H. Robinson’s Net Income Dips 9.8%
C.H. Robinson Worldwide Inc., based in Eden Prairie, Minnesota, said net income in the first quarter fell 9.8% to $93.2 million, or 63 cents per share, from $103.3 million, or 64 cents per share, as profit margins came under pressure.
The company’s report, including a 5% rise in revenue to $3.14 billion, noted that North American truckload margins declined because costs per mile rose 12%, faster than a 10% increase in revenue.
Transportation revenue rose nearly 8%. Truckload accounted for more than 60% of the brokerage and logistics company’s net revenue. Net revenue represents revenue less the cost of purchased transportation. North American truckload volume rose 3%.
Weather disruptions affected truckload by constraining capacity, the statement said. Truckload net revenue was $269.8 million, or 0.5% above last year’s first quarter.
Results were better in the less-than-truckload business, where net revenue was 2.8% higher at $60.1 million. Margins in that segment fell slightly because of higher carrier prices.
In other smaller businesses, profitability improved in the ocean, air, customs and logistics units. Sourcing for produce shipments generated 16% less net revenue.
