Expeditors Reports Higher Net Income, Revenue in 2Q
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Expeditors International of Washington Inc. on Aug. 6 reported net income rose to $153 million, or 88 cents per share. That’s up 9% from $140.6 million, or 79 cents a share, in the same quarter a year ago.
Revenue at the Seattle-based logistics company rose 4% to $2 billion in the period ended June 30.
Volume was down in parts of the world, according to CEO Jeffrey Musser, but the company still was able to grow its business worldwide.
“During the quarter and throughout the first half of the year, we have shown our ability to manage uncertainty and deliver profitable growth,” Musser said in a news release. “While our airfreight business was challenged as a result of a slowdown in export volumes out of north Asia and the United States, we continued to enhance our efforts on growing these two important markets as a focus of our key strategic initiatives.
“Additionally, the current climate of geopolitical volatility has created uncertainty, but our organization continues to show that the strength of our global presence and customer focus has never been more important in our relentless drive to grow while maintaining our profitability.”
Musser said Expeditors continued to grow its customs brokerage and import services, Transcon, and its warehouse and distribution services.
The company reported operating income went up 5% to $192 million. Net revenue increased 3% to $662 million.
For a second consecutive quarter, Expeditors increased the volume of ocean-freight containers while boosting net revenue per container. There was comparatively soft demand in certain air markets, Expeditors reported, as airfreight tonnage volume decreased 5%, and ocean container volume increased 2%.
“While we boosted operating efficiency compared to the first quarter, it remained below our target 30%, due again to lower airfreight net revenues,” said Bradley S. Powell, senior vice president and chief financial officer.
Expeditors has 176 district offices and branch locations located on six continents. The company provides consolidation or forwarding of air and ocean freight, customs brokerage, vendor consolidation, cargo insurance, time-definite transportation, order management, warehousing and distribution and customized logistics solutions.
Expeditors ranks No. 7 on the Transport Topics Top 50 list of the largest logistics companies in North America.