C.H. Robinson beats quarterly profit estimates as cost controls offset weak freight demand

Reuters
Jan 29
C.H. Robinson beats quarterly profit estimates as cost controls offset weak freight demand 

Jan 28 (Reuters) - C.H. Robinson CHRW.O reported fourth-quarter profit above Wall Street estimates on Wednesday, as cost controls helped the global freight forwarder dampen the impact of weak demand in a challenging global trade environment.

Shares of the company rose 6.3% in aftermarket trading.

The largest U.S. freight broker reported a 5% fall in operating expenses for the quarter, while personnel expenses and other selling, general and administrative costs also declined about 5% each. Its average employee headcount declined 12.9% in the fourth quarter.

C.H. Robinson has increasingly turned to artificial intelligence for routine functions such as pricing shipments, coordinating pickups and deliveries, and monitoring cargo in transit, helping streamline operations and reduce manual processes. The shift comes as the U.S. freight market grapples with muted shipment volumes and excess capacity, which are weighing on rates and pressuring logistics companies to rein in costs.

"The fourth quarter certainly provided a challenging macro environment, with weak global freight demand, rising spot costs in trucking and falling ocean rates all providing headwinds to our business," CEO Dave Bozeman said.

The company's Global Forwarding unit, which includes its freight forwarding business, posted a 17.3% slump in quarterly revenue to $730.98 million.

Its total revenue fell 6.5% to $3.9 billion, further weighed down by the divestiture of its Europe Surface Transportation business, besides lower pricing and volumes in ocean and truckload services.

However, cost controls helped the company post an adjusted profit for the quarter of $1.23 per share, beating analysts' estimate of $1.12 per share, according to data compiled by LSEG.

(Reporting by Abhinav Parmar and Apratim Sarkar in Bengaluru; Editing by Shreya Biswas and Leroy Leo)

((Abhinav.Parmar@thomsonreuters.com;))

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10