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Expeditors quarterly profit up 20pc to US$114 million, sales off 10pc
SEATTLE-based global logistics firm Expeditors International achieved year-on-year net profit growth of 20 per cent in the fourth quarter of 2015 to US$114.4 million.
"In the fourth quarter, we continued to benefit from available ocean and air carrier capacity and favourable spot market buying opportunities," said vice president and chief financial officer Bradley Powell.
Nevertheless, total revenue declined 10 per cent in the fourth quarter to $1.6 billion, which the company blamed on weak air cargo and ocean freight demand globally.
Fourth quarter air freight forwarding tonnage dipped one per cent compared to the same period a year ago, dragging down air freight service revenue 12.8 per cent to $679.7 million.
Ocean freight forwarding volume decreased by two per cent year on year, resulting in a 13.5 per cent decline in ocean services revenue which hit $491.5 million in the fourth quarter, reported IHS Media.
"While we believe we benefited in the first half of the year from some unquantifiable increase in air freight because of the west coast labour dispute, we were adversely impacted by a softening in rates and volumes in the second half of the year," said CEO Jeffrey Musser.
The outlook for this year also appears challenging. "It's no surprise that global uncertainty has made an increasingly interconnected marketplace more unpredictable, and we expect rate volatility to continue for some time," said Mr Powell.
"In the fourth quarter, we continued to benefit from available ocean and air carrier capacity and favourable spot market buying opportunities," said vice president and chief financial officer Bradley Powell.
Nevertheless, total revenue declined 10 per cent in the fourth quarter to $1.6 billion, which the company blamed on weak air cargo and ocean freight demand globally.
Fourth quarter air freight forwarding tonnage dipped one per cent compared to the same period a year ago, dragging down air freight service revenue 12.8 per cent to $679.7 million.
Ocean freight forwarding volume decreased by two per cent year on year, resulting in a 13.5 per cent decline in ocean services revenue which hit $491.5 million in the fourth quarter, reported IHS Media.
"While we believe we benefited in the first half of the year from some unquantifiable increase in air freight because of the west coast labour dispute, we were adversely impacted by a softening in rates and volumes in the second half of the year," said CEO Jeffrey Musser.
The outlook for this year also appears challenging. "It's no surprise that global uncertainty has made an increasingly interconnected marketplace more unpredictable, and we expect rate volatility to continue for some time," said Mr Powell.
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