C.H. Robinson posts slightly lower 1Q earnings

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Third-party logistics provider C.H. Robinson Worldwide Inc. announced Wednesday, April 21, that it earned $84 million in the first quarter of 2010 compared with $85.4 million in the same quarter in 2009. Revenue rose 23 percent to $2.07 billion from $1.69 billion. Net revenue margin in its transportation segment, which accounts for 79 percent of total revenue, decreased to 17.4 percent from 22.6 percent.

The Minneapolis-based company said margins in its trucking segment decreased as it offered lower prices to its customers, but that transportation and fuel costs rose. A jump in airfreight and logistics revenue was offset by declines in truck, ocean and intermodal segments.

“The trends of margin compression and strong volume growth during the first quarter of 2010 have continued into the first three weeks of April, with our total net revenue activity approximating that of the first quarter,” said John Wiehoff, chief executive officer.

C.H. Robinson said it is taking market share and it sees “a growing conviction that price increases will happen and will stick.”