Third party logistics provider and freight brokerage operation C. H. Robinson Worldwide says it plans to change its focus following its release of fourth quarter earnings.
In an conference call with investors on Wednesday, John Wiehoff, chairman and CEO, indicated the company was going to rely less on truckload business and will look to increase the size of its freight-forwarding and intermodal operations, according to The Loadstar.
“Size and scale matter in our business and it’s important that we continue to grow our top line and that we have a stronger presence in the market so we can take advantage of that size and scale,” he said during the call.
Revenue in the company’s freight forwarding business increased 37% in the final quarter of last year with the company giving much of the credit for the hike to its purchase of the freight-forwarder, Phoenix International late in 2012.
Weihoff said the company plans to leverage its expertise in intermodal and how it works with truckload shipments, to transfer more truckload freight to rails.
The Minnesota-based company reported its fourth quarter revenue increased 6.1% from the same time a year ago while it gained 12.3% last year over 2012. Despite this net income dropped 60.8% during the quarter to $92.9 million while falling 27.8% last year to $415.9 million.
Part of this was due to 5.6% decline in the company’s core truckload business during the final quarter of the year but intermodal revenue increased 9.4%.
You can read more about it from The Loadstar and see a breakdown on C.H. Robinson’s financial results on the company website.