Minneapolis, Minn.-based C.H. Robinson reported a 4.5% increase in total revenues for the fourth quarter and a revenue gain of 11.8% for all of 2018.
Fourth-quarter revenues for the quarter ending Dec. 31 rose 4.5% to $4.1 billion, and income from operations rose 21.2% to $255.5 million, according to a news release.
For the full year, total revenues jumped 11.8% to $16.6 billion and income from operations rose 17.7% to $912 million.
“We are pleased with our financial results in 2018,” John Wiehoff, chairman and CEO of C.H. Robinson, said in the release. “As we turn to 2019, we remain focused on top-line growth and operating margin expansion and believe our continued investments in technology will help enable us to achieve these objectives.”
Wiehoff said in the release that a critical part of the company’s strategy is to make investments that add value for our customers and carriers and drive business growth “regardless of where we are in the freight cycle.”
Fourth-quarter total revenues for the Robinson Fresh segment declined 10.6% to $531.8 million, according to the release. Segment net revenues expanded 18.8% to $64.3 million in the quarter, while sourcing net revenues dropped 8.2%. Case volumes declined 6.5%, the company said, driven by lower restaurant traffic at the company’s foodservice customers.
Transportation net revenues increased 45.9%, primarily driven by truckload pricing increases. Robinson Fresh operating expenses increased 7.9%, pushed higher by increased variable compensation expense and partially offset by a 5.1% reduction in average headcount, according to the release.
Surface transportation division
The release said fourth-quarter total revenues for C.H. Robinson’s North American Surface Transportation segment totaled $2.8 billion, an increase of 6% compared with the prior year. The company reported net revenues in truckload increased 13%, with less than truckload (LTL) net revenues 11.5% higher, and intermodal net revenues up 76.4% compared with a year ago.
Excluding the effect of the change in fuel prices, C.H. Robinson said the average North America truckload rate per mile charged to customers increased approximately 1.5% in the quarter, while the company’s truckload transportation cost per mile decreased approximately 1%. Truckload volume declined 1.5% in the quarter, according to the release, while LTL volumes grew 2%, and intermodal volumes dropped 13% versus the prior year. Operating expenses increased 10.9%, the company said, mostly due to increased variable compensation.