For the third quarter this year, C.H. Robinson Worldwide Inc. saw net income drop 7.4% even though total revenue increased 15% to $3.3 billion.
Shareholders got a penny more per share than Wall Street analysts thought they would for the quarter, receiving 73 cents per share.
The Eden Prairie, Minn.-based logistics company reported huge increases in third quarter net revenues in three segments of its operations. Company officials attributed that growth primarily to the 2012 acquisition of Phoenix International Inc.
“Our ocean transportation net revenues increased 168.6 %, our air transportation net revenues increased 100.5 % and our customs net revenues increased 117.4 % in the third quarter of 2013 compared to the third quarter of 2012,” company officials said in a statement issued Nov. 5 with their balance sheet.
Those three areas are among the core functions of Phoenix International. The Chicago-based Phoenix had 76 offices in 15 countries serving about 15,000 customers when C.H. Robinson bought it.
News from its sourcing business wasn’t as positive. Net revenues dropped 9.5% for the quarter — $30.4 million this year compared to $33.7 million in the third quarter of 2012.
“Cost of products sourced for resale increased as a result of lower crop yields primarily due to weather. We also lost certain commodity business with a significant customer,” officials said in the news release.
Truckload shipping remains the largest portion of C.H. Robinson’s business. Net revenue in that area dropped 1.3% to $265 million for the third quarter compared to 2012’s third quarter. Truckload shipping represents almost 60% of the company’s profits before operating expenses and taxes.
Excluding the estimated impact of fuel prices, the company’s expenses related to truckload operations in North America increased 4% for the quarter while truckload volumes increased 13%. C.H. Robinson increased its average truckload rate per mile about 2% for customers in North America in the quarter, excluding changes in fuel prices.
For the past four quarters, income for C.H. Robinson grew 32% on average year-over-year, according to Forbes.