Amid softer demand for its transportation services, Eden Prairie-based C.H. Robinson reported an 8% increase in its second-quarter earnings per share.
C.H. Robinson expects 'soft' freight market for rest of year
August 1, 2019 at 12:13AM
The third-party logistics firm earned $169.2 million, or $1.22 per share, for the quarter. Total revenue decreased 8.6% to $3.9 billion due to lower pricing across its transportation service lines. Improved margins in Robinson's truckload-services offerings, though, allowed for a 3.5% in net-revenue gain.
CEO Bob Biesterfeld said he was pleased in light of the "soft freight environment," which he expects to persist through the rest of the year.
"Tariff concerns and fears of recessions are resulting in weakening shipper demand," Biesterfeld told analysts on its earnings call. "And while data suggest capacity are starting to exit the market, we believe it could be a few quarters before there's any meaningful reduction in capacity."
The quarterly earnings matched analysts' expectations, but the company missed revenue expectations by 2.7%, according to a consensus estimate from 15 analysts tracked by Thomson Reuters.
The company increased its operating margin for the fifth consecutive quarter and returned to shareholders in the quarter $179.8 million through dividends and $110.5 million in share repurchases.
Results were released after the market closed on Tuesday. In trading Wednesday, shares were down 1% to $88.73.
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