Bob Biesterfield, CEO of transport company, CH Robinson, said the company achieved 3.5 per cent net revenue growth and solid performance year-on-year where net revenues increased 17 per cent for the quarter ended June 30 2019.
“We delivered our fifth consecutive quarter of operating margin expansion and an eight percent increase in earnings per share,” he said. “We continued to make improvements in working capital, which combined with increased earnings, allowed us to generate nearly $200 million [USD / $291.8 million AUD] in cash flow from operations and increase cash returns to our shareholders. We are pleased with our second quarter results in this soft freight environment.”
A summary of the results include: total revenues decreased 8.6 per cent to $3.9 billion USD ($5.6 billion AUD), driven by lower pricing across most transportation service lines; net revenues increased 3.5 per cent to $695.2 million USD ($1 billion AUD), primarily driven by margin improvement in truckload services; operating expenses increased 3.4 per cent to $467.7 million USD ($682.5 million AUD); income from other operations totalled $227.5 million USD ($331.9 million AUD), up 3.9 per cent from last year due to growth in North American Surface Transportation, partially offset by declines in Global Forwarding and All Other and Corporate; operating margin of 32.7 per cent increased 10 basis points.
“We expect the soft freight environment to continue through the balance of 2019,” said Biesterfeld. “Despite the current freight environment, our long-term goals remain unchanged. We remain focused on taking market share, automating core processes while delivering industry-leading quality service to our customers and carriers and improving operating leverage in our businesses.”
CH Robinson, headquartered in Eden Prairie, Minnesota, US, is a global third-party logistics provider with more than 124,000 customers and 76,000 active contract carriers. It has an integrated network of offices and more than 15,000 employees.