C.H. Robinson Worldwide on Tuesday, Oct. 23, reported financial results for the quarter ended Sept. 30. Gross profits were $313.1 million, up 12.5 percent from $278.3 million recorded in the year-ago period. Operating income was $131.8 million, up 18.6 percent from $111.1 million during the same quarter in 2006. Net income was $83.7 million, up 19 percent from $70.4 million in the 2006 third quarter.
For the nine-month period ending Sept. 30, gross profits were $921.0 million, up 14.6 percent from $804.0 million recorded in the year-ago period. Operating income was $376.8 million, up 22.6 percent from $307.5 million during the same period in 2006. Net income was $239.0 million, up 22.5 percent from $195.0 million in the 2006 nine-month period.
According to C.H. Robinson, 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. The Minneapolis-based company said its transportation gross profit margin increased to 18.0 percent in 2007 from 17.5 percent in 2006.
C.H. Robinson said the increase in its transportation gross profit margin in the third quarter was due to a slight increase in its truck transportation gross profit margins and to its mix of business; it saw faster growth in its air and miscellaneous transportation management services businesses, which had higher gross profit margins than its transportation business overall.
The company said continued softness in the North American truck market slowed its truck transportation gross profit growth in the third quarter of 2007; truck transportation gross profit growth of 12.1 percent was driven primarily by increased volumes and a small increase in its gross profit margin, offset by a slight decrease in truckload rates.
C.H. Robinson said its intermodal gross profit growth of 9.3 percent in the third quarter was due to an increase in volumes; volume growth was driven primarily by cross-selling with existing customers.
