Air Logistics

C.H. Robinson’s Q4 total revenues increased 19.9% to $4.5 billion


C.H. Robinson Worldwide Inc has reported financial results for the quarter ended December 31, 2020.

“Our fourth quarter was marked by solid performance across our broad service portfolio, continued progress on repricing our truckload business to reflect the changing market conditions, and further advancements in our technology and transformation efforts that are providing meaningful improvements,” said Bob Biesterfeld, chief executive officer of C.H. Robinson. He added, “Our enterprise portfolio that allows us to offer end-to-end solutions for our customers is unique to the logistics industry, and shippers continue to rely on Robinson’s global supply chain expertise and our data and scale advantages to ensure critical goods are moved as quickly and as inexpensively as possible.”

Fourth quarter results summary
Total revenues increased 19.9 per cent to $4.5 billion, driven primarily by higher pricing and higher volume across most of our service lines. Gross profits increased 10.5 per cent to $636.1 million. Adjusted gross profits increased 10.7 per cent to $640.6 million, primarily driven by higher pricing and higher volume in our Global Forwarding business segment and contributions from the acquisition of Prime Distribution Services (Prime).

Operating expenses decreased 1.9 per cent to $433.8 million, primarily due to cost savings initiatives. Personnel expenses increased 3.4 per cent to $309.3 million, compared to the fourth quarter of 2019, which included a reduction in incentive compensation. Average headcount decreased 4.8 per cent, despite headcount additions from Prime that added approximately 2.0 percentage points.

Selling, general and administrative (“SG&A”) expenses of $124.5 million decreased 13.0 per cent, primarily due to cost savings initiatives including lower travel expenses. Income from operations totaled $206.8 million, up 51.2 per cent due to the increase in adjusted gross profits. Adjusted operating margin of 32.3 per cent increased 870 basis points. Interest and other expenses totaled $12.0 million, consisting primarily of $12.3 million of interest expense, which decreased $0.1 million versus last year due to a lower average debt balance.

The fourth quarter also included a $1.1 million favourable impact from foreign currency revaluation and realised foreign currency gains and losses. The effective tax rate in the quarter was 24.1 per cent compared to 21.4 per cent in the fourth quarter last year. The increase was primarily due to one-time items related to the tax provision in Mexico, which were favourable in the fourth quarter of 2019 and unfavorable in the fourth quarter of 2020. Net income totaled $147.8 million, up 49.1 per cent from a year ago. Diluted EPS of $1.08 increased 47.9 percent.

Full year results summary
Total revenues increased 5.9 per cent to $16.2 billion, driven primarily by higher pricing in ocean and air services and contributions from the Prime acquisition. Gross profits decreased 7.0 per cent to $2.4 billion. Adjusted gross profits decreased 6.7 per cent to $2.4 billion, primarily driven by lower adjusted gross profit margins in truckload services, partially offset by contributions from the Prime acquisition and higher adjusted gross profits in air and ocean services.

Operating expenses decreased 3.2 per cent to $1.7 billion. Personnel expenses decreased 4.3 per cent to $1.2 billion, driven primarily by cost savings initiatives, including a 2.8 percent decrease in average headcount, and a decline in benefits expenses and incentive compensation. SG&A expenses decreased 0.3 percent to $496.1 million, primarily due to significantly lower travel expenses, partially offset by the ongoing expenses from the Prime acquisition.

Income from operations totaled $673.3 million, down 14.8 per cent from last year due to a decline in adjusted gross profits. Adjusted operating margin of 27.9 per cent decreased 260 basis points. Interest and other expenses totaled $44.9 million, which…



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