C.H. Robinson Reports Third Quarter Results.MINNEAPOLIS -- C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CHRW CHRW C.H. Robinson Worldwide (stock symbol) ), today reported financial results for the quarter ended September 30, 2007. Summarized financial results for the quarter ended September 30 are as follows (dollars in thousands, except per share data): [TABLE OMITTED] Total Transportation gross profits increased 13.4 percent to $276.6 million in the third quarter of 2007 from $243.9 million in the third quarter of 2006. Our Transportation gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. increased to 18.0 percent in 2007 from 17.5 percent in 2006. The increase in our Transportation gross profit margin in the third quarter was due to a slight increase in our truck transportation gross profit margins and to our mix of business. We had faster growth in our air and miscellaneous transportation management services businesses, which have higher gross profit margins than our Transportation business overall. Continued softness in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. truck market slowed our truck transportation gross profit growth in the third quarter of 2007. Our truck transportation gross profit growth of 12.1 percent was driven primarily by increased volumes and a small increase in our gross profit margin, offset by a slight decrease in truckload truck·load n. The quantity that a truck can hold. truckload n → camión m lleno rates. Our intermodal gross profit growth of 9.3 percent in the third quarter was due to an increase in volumes. Our volume growth was driven primarily by cross-selling with existing C.H. Robinson customers. The increase of 14.0 percent in our ocean transportation gross profits in the third quarter of 2007 was driven primarily by volume growth. Our air transportation gross profit growth of 57.8 percent in the third quarter of 2007 includes approximately $1 million of domestic air gross profits from our previously-disclosed acquisition of LXSI Services Inc. on July 13, 2007. Miscellaneous transportation gross profits consist primarily of transportation management fees and customs brokerage fees. The increase of 28.2 percent in the third quarter was driven primarily by increases in our transportation management business. For the third quarter, Sourcing gross profits increased 6.9 percent to $24.9 million in 2007 from $23.3 million in 2006. We continued to have success growing our business with retailers and foodservice providers. For the third quarter, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased 8.5 percent to $181.4 million in 2007 from $167.2 million in 2006. This was due to an increase of 8.1 percent in personnel expenses and an increase of 9.7 percent in selling, general and administrative expenses. As a percentage of gross profits, operating expenses decreased to 57.9 percent in the third quarter of 2007 from 60.1 percent in the third quarter of 2006. This decrease was due to a decline in personnel expenses as a percentage of gross profits from 46.7 percent to 44.9 percent. Expenses related to our restricted stock program and various other incentive plans are variable, based on growth in our earnings. Our slower earnings growth in the third quarter of 2007 compared to the third quarter of 2006 resulted in a decrease in expense related to some of these incentives plans. This contributed to our personnel expenses growing slower than our gross profits. Founded in 1905, C.H. Robinson Worldwide, Inc., is one of the largest non-asset based third party logistics companies in the world. C.H. Robinson is a global provider of multimodal Two or more modes of operation. The term is used to refer to a myriad of functions and conditions in which two or more different methods, processes or forms of delivery are used. On the Web, it refers to asking for something one way and receiving the answer another; for example requesting transportation services and logistics solutions, currently serving over 25,000 customers through a network of 218 offices in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , Europe, and Asia. C.H. Robinson maintains one of the largest networks of motor carrier capacity in North America and works with approximately 45,000 carriers worldwide. Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to such factors as market demand and pressures on the pricing for our services; competition and growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. within the third-party logistics A third-party logistics provider (abbreviated 3PL) is a firm that provides outsourced or "third party" logistics services to companies for part, or sometimes all of their supply chain management function. industry; freight levels and availability of truck capacity or alternative means of transporting See: mode of transport. freight, and changes in relationships with existing truck, rail, ocean and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to integrate the operations of acquired companies with our historic operations successfully; risks associated with litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and insurance coverage; risks associated with operations outside of the U.S.; risks associated with the produce industry, including food safety and contamination issues; changing economic conditions such as general economic slowdown, decreased consumer confidence, fuel shortages and the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports. Conference Call Information: C.H. Robinson Worldwide Third Quarter 2007 Earnings Conference Call Tuesday, October 23, 2007 5:00 p.m. Eastern time Live webcast available through Investor Relations Investor relations The process by which the corporation communicates with its investors. link at www.chrobinson.com Telephone access: 800-366-7417 Webcast replay available through November 6, 2007; Investor Relations link at www.chrobinson.com Telephone audio replay available until 12:59 a.m. Eastern Time on October 26, 2007: 800-405-2236; passcode: 11097521# [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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