Multi-modal freight transportation services and third-party logistics provider C.H. Robinson Worldwide Inc. reported its second quarter net income fell 22.4% from a year ago despite a 12.4% hike in total revenue.
Net income totaled $111.1 million, or 78 cents per share, during the period compared to $143.1 million, or $1 per share, a year earlier, and 12 cents less than a consensus estimate from analysts.
Revenue totaled $3.71 billion compared to $3.3 billion for the second quarter of 2016.
“We were able to continue to achieve market share gains during the second quarter; however, our income and EPS (earnings per share) results were disappointing and finished below our expectations,” said John Wiehoff, chairman and CEO.
According to Wiehoff, the results were significantly affected by truckload margin compression as purchased transportation costs increased significantly during the quarter while much of the company’s customer pricing is committed at relatively flat levels.
Part of the result was a drop of 22.2% in income from operations, totaling $181.8 million for the second quarter of the year.
The company’s North American surface transportation (NAST) operation, which provides truckload, less-than-truckload and intermodal services across the continent, saw total revenue increase 10.3% to $2.4 billion during the quarter as freight volume increased.
However, income from operations fell 23.2% to $140.3 million as NAST net revenues decreased 9.8% to $359.9 million in the second quarter of 2017, primarily from a decline in truckload net revenues.
The global forwarding segment saw total revenue increase 48.2% to $528.8 million while income from operations improved 23.6% to $27.7 million due to increases in business from its ocean freight, airfreight and customs brokerage services.
Robinson Fresh, which primarily includes the buying, selling, and marketing of fresh fruits, vegetables and other perishable items from around the world, reported revenue was flat at $657 million while income from operations fell by nearly 48% to $14.2 million as it saw operating expenses jump 15%.