C.H. Robinson reports total revenue increase of 12.8% to $3.8bn in Q3 2017

C.H. Robinson’s total revenues increased 12.8% to $3.8bn in Q3 2017 compared to Q3 2016. The increase in total revenues was driven by increased pricing and volume growth across all transportation services.

C.H. Robinson’s total net revenues increased 6.3% to $593m. APC Logistics (APC), which was acquired at the close of business on September 30, 2016, represented approximately 2% of the total net revenues in Q3 2017.

Total operating expenses increased 15.0% with personnel expenses increasing by 14.1%. Other selling, general, and administrative expenses increased 17.6%. This increase was driven by costs related to the addition of the APC and Milgram businesses, and increases in the provision for bad debt, claims expenses, and warehouse costs.

The company’s three reportable segments include North American Surface Transportation (“NAST”), Global Forwarding, and Robinson Fresh. 

NAST total revenues increased 9.6% to $2.5bn in Q3 2017 from $2.3bn in Q3 2016. This increase was driven by pricing increases in all services. NAST net revenues decreased 0.2% to $377.4m, primarily from a decline in truckload net revenues.

NAST truckload net revenues decreased 2.1% to $266.6m, while truckload volumes were flat. NAST truckload net revenue margin decreased due to transportation costs rising faster than truckload pricing.

NAST accounted for approximately 93% of C.H. Robinson total North America truckload net revenues in Q3 2017. Excluding the estimated impacts of the change in fuel prices, the company’s average North America truckload rate per mile charged to customers increased 6.5% in Q3 2017. Truckload transportation costs increased approximately 8.5%, excluding the estimated impacts of the change in fuel prices.

NAST LTL net revenues increased 4.8% to $97.6m. Volumes in the division increased approximately 6.5% and net revenue margin decreased. NAST intermodal net revenues decreased 1.4% to $7.1m. However, volumes in the division increased due to contractual volume growth, partially offset by a decrease in transactional business.

Global Forwarding total revenues increased 41.3% to $552.1m and net revenues increased 39.1% to $129.8m. The acquisitions of APC and Milgram accounted for approximately 18 percentage points of the net revenue growth in Global Forwarding.

Ocean net revenues increased 44.0% to $81.1m and air net revenues increased 32.7% to $24.0m. Customs net revenues increased 41.4% to $17.4m in Q3 2017. These increases were primarily due to volume increases, including those from acquisitions.

Source: C.H. Robinson