By Chelsea Stevenson
Expeditors International of Washington Inc.'s (EXPD)
second-quarter earnings fell 12% as the global logistics company's
airfreight business struggled, though volume growth in other areas
climbed.
Expeditors provides services like air- and ocean-freight
forwarding, customs clearance and marine insurance. The company had
warned this year that earnings would fall short of Street views,
blaming a shaky global economy for lighter volumes, particularly
from airfreight customers.
Recently though, 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.
The company reported a profit of $84 million, or 39 cents a
share, down from $95 million, or 44 cents a share, a year earlier.
Revenue fell 5% to $1.5 billion. Analysts polled by Thomson Reuters
most recently expected per-share earnings of 43 cents on revenue of
$1.59 billion.
Operating margin narrowed to 8.8% from 9.6%.
Airfreight services revenue, the biggest contributor to the top
line, fell 15% while ocean freight and ocean services revenue rose
6.6% reflecting the magnitude of this year's carrier buy rate
increase, as carriers moved aggressively to stabilize their
financial situation. Revenue from customs brokerage and other
services were slightly higher to $347.4 million.
Rival C.H. Robinson Worldwide Inc. (CHRW) said last month its
second-quarter earnings climbed 3.2% as revenue in its sourcing and
payment services segments rose, though sales in its key trucking
segment slipped slightly.
Shares of Expeditors recently were down 1.1% to $35.64. The
stock is down 19% over the past 12 months.
Write to Chelsea Stevenson at chelsea.stevenson@dowjones.com
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