CH Robinson Worldwide, Inc. today announced its financial results for the three months ended March 31, 2022.
First quarter key indicators:
- Gross profit increased 29.1% to $900.5 million
- Adjusted gross profit(1) increased 29.0% to $906.2 million
- Operating income increased 54.7% to $345.5 million
- Adjusted operating margin(1) increased 630 basis points to 38.1% Diluted earnings per share (EPS) increased 60.2% to $2.05
- Cash flow used by operations increased by $42.8 million to $13.9 million
“In our first quarter, we delivered record quarterly earnings,” said Bob Biesterfeld, President and CEO of CH Robinson. “The sequential improvement was driven by a significant operating margin expansion in our North American surface transportation business, as we improved the health of our contracted truckload business, continued to grow our volume of full loads and improved the profitability of our LTL business. Our Global Forwarding team continued to provide excellent service to our customers and collaborate with our carriers, generating more business on our platform And finally, our Robinson Fresh, Managed Services and Europe Surface Transportation businesses all improved their revenue growth turnover and their operating result from one year to the next.”
Total first quarter revenues for CH Robinson’s NAST segment totaled $4.1 billion, an increase of 28.1% over the prior year, primarily due to higher truckload prices and less than LTL loads and an increase in truckload shipments. NAST adjusted gross profit increased 20.2% in the quarter to $506.1 million. Adjusted gross margin per truckload increased by 19.5% due to a 15.0% increase in adjusted gross margin per truckload and a 4.0% increase in shipments. Our average full-line haul rate per mile charged to our customers, excluding fuel surcharges, increased approximately 20.5% in the quarter, while the full-line trucking cost excluding fuel surcharges fuel, increased by approximately 21.0%, resulting in a 17.0% increase in the number of gross profit-adjusted loads per mile.
Adjusted LTL gross margin increased by 25.5% compared to the prior year period, with adjusted gross margin per order increasing by 27.0% and LTL volumes decreasing by 1.0%, mainly due to due to a normalization of activity levels as our LTL volumes in Q1 2021 continued to be supported by a few large customers who took advantage of the stay-at-home trend during COVID. NAST’s overall volume growth increased 1.0% for the quarter. Operating expenses increased by 13.9% primarily due to increased salaries, incentive compensation and technology related expenses. Operating income increased 33.3% to $182.4 million, and adjusted operating margin increased 350 basis points to 36.0%. NAST’s average headcount increased 12.4% during the quarter.
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