Expeditors International of Washington Inc.'s (EXPD)
first-quarter earnings fell 16% as the global logistics company
recorded a decline in airfreight services revenue.
Expeditors provides services like air- and ocean-freight
forwarding, customs clearance and marine insurance. The company had
recently warned that earnings would fall short of Street views,
blaming a shaky global economy for lighter volumes, particularly
from airfreight customers.
Expeditors has said it planned to become more aggressive in
containing costs and expanding both its customer base and its reach
within its existing base.
Wednesday, Chief Executive Peter J. Rose said many of the
company's largest customers are being very cautious about the
amount of airfreight they are using this year. Rose also noted the
company experienced a strong reduction in year-over-year airfreight
tonnage and a margin contraction in March, a month that is usually
a very significant airfreight month from a tonnage perspective.
The company reported a profit of $76.7 million, or 36 cents a
share, down from $91.2 million, or 42 cents a share, a year
earlier. The company had recently projected earnings of 35 cents to
37 cents a share, a view that fell short of Wall Street estimates
at the time.
Revenue fell 3.4% $1.41 billion. Analysts polled by Thomson
Reuters most recently expected revenue of $1.38 billion.
Operating margin narrowed to 8.9% from 10.1%.
Airfreight services revenue, the biggest contributor to the top
line, fell 8.8% while ocean freight and ocean services revenue
slipped 1.4%. Revenue from customs brokerage and other services was
up 5.7%.
Shares closed at $40.74 Wednesday and were unchanged after
hours. The stock is down 25% over the past 12 months.
-By Kristin Jones and Nathalie Tadena; Dow Jones Newswires;
212-416-2208; kristin.jones@dowjones.com