C.H Robinson Worldwide Inc. has released its financial results for the second quarter ended June 30, 2019. Total revenues decreased 8.6% to $3.9bn in the second quarter, compared with $4.3bn in the second quarter 2018. This was largely driven by lower pricing across most transportation service lines. Operating profit totalled $227.5m, up 3.9% from last year due to growth in North American Surface Transportation (“NAST”), partially offset by declines in Global Forwarding and All Other and Corporate.
Second quarter total revenue for C.H. Robinson’s NAST segment totalled $2.9bn, a decrease of 9.2% over the prior year, primarily driven by decreased pricing. However, operating profit increased 8.8% in the quarter. The results from the NAST segment also include Robinson Fresh transportation, which was previously reported under the Robinson Fresh segment.
Second quarter Robinson Fresh net revenues decreased 4.3% to $31.2m, driven by strategic decisions to exit unprofitable business. Other Surface Transportation net revenues increased 3.3% to $15.5m, with the acquisition of Dema Service contributing 4 percentage points of net revenue growth.
In the Global Forwarding segment, total revenue decreased 4.1% to $592.5m primarily driven by lower pricing in ocean and air and a decline in air volume. Ocean net revenues decreased 1.6% and air net revenues decreased 12.2%. Furthermore, the operating profit decreased 10.6% to $26.6m.
Source: C.H Robinson
