Nonasset-based third-party logistics provider C.H. Robinson Worldwide on Tuesday, July 21, reported second-quarter profit of $92 million, up slightly from $90 million for the same period a year ago. Revenue fell 17 percent to $1.93 billion.
The Minneapolis-based company said its transportation revenue decline of 22.8 percent was driven by falling transportation rates and volume declines in many of its transportation modes; transportation rates declined due primarily to a reduction in fuel prices. The company said it also reduced prices to its customers, while a significant decline in overall transportation market demand due to the economic recession negatively impacted volumes.
Total transportation net revenues increased 2.9 percent to $306.2 million from $297.5 million. Truck net revenues — which consist of truckload and less-than-truckload services — increased 5.6 percent, while truckload volumes decreased about 5 percent. Truckload net revenue margins increased due to lower fuel prices and lower cost of capacity; excluding the estimated impacts of fuel, on average truckload rates decreased about 5 percent. LTL net revenues decreased slightly, driven by price declines, but were offset partially by volume increases. LTL net revenue margin was relatively consistent with the second quarter of 2008.