Lower pricing drives net revenues lower, C.H. Robinson reports
Lower pricing in the first quarter more than offset higher volume in transportation services for C.H. Robinson Worldwide.
The Minneapolis-based company reported net revenues decreased 16.3%, to $568 million, in the quarter ending March 31, primarily driven by lower margins in truckload services. Total revenues increased 1.4% to $3.8 billion, primarily from a 7.5% volume increase for both truckload and less-than-truckload (LTL) business. That higher volume was mostly offset by lower pricing in truckload services, according to a news release.
The company reported income from operations decreased 51.3%, to $109.4 million, and cash flow from operations decreased 77.2%, to $58.5 million.
C.H. Robinson is well-positioned to withstand economic turbulence associated with the COVID-19 pandemic, CEO Bob Biesterfeld said.
“We continue to have a strong balance sheet and exited the first quarter with over $1.2 billion of liquidity,” Biesterfeld said in the release. “We remain committed to maintaining our quarterly dividend, and we believe we are well-positioned to weather the economic uncertainty in the months ahead.”
The company reported that:
- First-quarter total revenues for its North American Surface Transportation (NAST) segment was $2.8 billion, an increase of 1%, over the prior year, aided by increased truckload and LTL volumes;
- NAST net revenues decreased 23.4% in the quarter to $372.8 million, with the March 2020 acquisition of Prime Distribution Services contributing 1% of net revenue growth in the quarter;
- First-quarter Robinson Fresh net revenues decreased 4.2% to $27.5 million, primarily due to a 2.5% decrease in case volume and a decline in margin; and
- First-quarter total revenues for the Global Forwarding segment decreased 1.3% to $530.4 million, mostly because of lower volumes in ocean and air.
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