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Expeditors profit off 5.8pc to US$431 million, sales flat at $2.16 billion
SEATTLE forwarder Expeditors International suffered a 5.8 per cent year-on-year decline in 2016 net profit to US$431 million, drawn on revenues of $2.16 billion, down 1.1 per cent.
Fourth quarter net profit was down 3.4 per cent year on year to US$111 million, drawn on revenues of $549 million, up 2.3 per cent, reported Seattle's Cargo Facts.
Despite higher volumes, operating profit for the quarter dropped 3.2 per cent to $172 million while the Fortune 500 company handled record volumes in the last three months of 2016.
It moved 12 per cent more air and ocean freight year on year in the quarter. Blamed for financial losses were slumping freight rates and expenses arising from the Hanjin bankruptcy.
"Rates remained highly unpredictable in the quarter, as they were throughout much of 2016, again putting unusual pressure on our margins," said CEO Jeffrey Musser.
"While experience has shown us that margin pressure is cyclical, in light of such truly unprecedented rate volatility, we are improving processes to better address the rapid changes in buy and sell rates which we expect to continue," he said.
Fourth quarter net profit was down 3.4 per cent year on year to US$111 million, drawn on revenues of $549 million, up 2.3 per cent, reported Seattle's Cargo Facts.
Despite higher volumes, operating profit for the quarter dropped 3.2 per cent to $172 million while the Fortune 500 company handled record volumes in the last three months of 2016.
It moved 12 per cent more air and ocean freight year on year in the quarter. Blamed for financial losses were slumping freight rates and expenses arising from the Hanjin bankruptcy.
"Rates remained highly unpredictable in the quarter, as they were throughout much of 2016, again putting unusual pressure on our margins," said CEO Jeffrey Musser.
"While experience has shown us that margin pressure is cyclical, in light of such truly unprecedented rate volatility, we are improving processes to better address the rapid changes in buy and sell rates which we expect to continue," he said.
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