Freight-forwarder Expeditors International continued to struggle with "a very challenging and uncertain global economy" in the second quarter, reporting financial results Tuesday that missed Wall Street estimates.
Freight-forwarder Expeditors International continued to struggle with “a very challenging and uncertain global economy” in the second quarter, reporting financial results Tuesday that missed Wall Street estimates.
The Seattle-based logistics company said it earned a net profit of nearly $84 million, or 39 cents a share, on revenues of $1.5 billion in the three months ended June 30. Analysts had on average expected 43 cents a share on $1.6 billion in revenue; both figures were below Expeditors’ results from a year earlier as well.
Airfreight services, Expeditors’ biggest segment, was down 14.8 percent compared with the year-ago period, continuing trends of smaller shipments and lower global airfreight demand that became evident in the first quarter.
“Until there is more certainty in the global economy, these trends could continue for the short to medium term,” Chairman and Chief Executive Peter Rose said in a statement.
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The second-quarter falloff was sharpest in the company’s Europe and Africa segment, where revenue was down 12.1 percent versus the year-earlier period.
Expeditors’ revenues and profits now have fallen year-over-year for four consecutive quarters. The stock ended regular trading down 1 percent, or 37 cents, at $35.67. The shares have lost nearly a quarter of their value since mid-April.
“Expeditors was founded in tough times, and we’ve been through plenty of them since our founding,” Rose said. “Being able to get through tough times without letting tough times get through us is deeply embedded in our DNA.”
Drew DeSilver: 206-464-3145 or firstname.lastname@example.org