C.H. Robinson Worldwide, based in Minneapolis, reported financial results for the fourth quarter and full year ended Dec. 31.
For the fourth quarter, gross revenues were $1.95 billion, up 18.8 percent from $1.64 billion for the same period in 2006. For the full year, gross revenues were $7.32 billion, up 11.6 percent from $6.56 billion in 2006.
For the fourth quarter, net income was $85.3 million, up 18.7 percent from $71.8 million for the same period in 2006. For the full year, net income was $324.3 million, up 21.5 percent from $266.9 million in 2006.
Total Transportation gross profits increased 17.0 percent to $288.0 million in the fourth quarter of 2007 from $246.2 million in the fourth quarter of 2006. The company’s Transportation gross profit margin decreased to 17.7 percent in 2007 from 18.3 percent in 2006 due to gross profit margin declines in several of its transportation modes.
In its North American truck business, the company’s volume growth approximated gross profit growth of 16.4 percent in the fourth quarter of 2007. Gross profit margins declined slightly. Inclusive of fuel, truckload rates increased about 3 percent; excluding estimated impacts of fuel, rates decreased about 3 percent.
Intermodal gross profit decrease of 4.3 percent in the fourth quarter was due to a decline in gross profit margins, partially offset by an increase in volumes. Gross profit margin decline was due to a change in the company’s mix of business from higher-margin transactional opportunities to more contractual intermodal business.
Information Services gross profits grew 10.9 percent in the fourth quarter of 2007. Growth was driven primarily by volume growth in core fuel card and cash advance services. In addition, revenue per transaction was up slightly due to the price of fuel. With certain merchants, the company’s fee is based on a percentage of the sale amount. About one-third of the growth was related to other services, such as fleet card and carrier compliance services.
