“Gross profit increased 5.0% to $880.7 million”

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CH Robinson Worldwide, Inc. today announced its financial results for the quarter ended September 30, 2022.

Third quarter key indicators:

  • Gross profit increased 5.0% to $880.7 million and adjusted gross profit increased 5.1% to $887.2 million.
  • Operating profit fell 7.5% to $287.6 million
  • Adjusted operating margin(1) decreased by 440 basis points to 32.4%
  • Diluted earnings per share (EPS) fell 3.8% to $1.78
  • Cash flow from operations increased by $699.0 million to $625.5 million

“During our second quarter earnings call at the end of July, I spoke of a deceleration in demand that we expected to see in the second half of 2022 in three major freight verticals, including market weakness in retail and a further slowdown in the housing market. We are now seeing those expectations come to fruition, with slowing freight demand and lower prices in the freight forwarding and surface transportation markets,” said Bob Biesterfeld, President and CEO of CH Robinson.

“Through the changes in the freight cycle, we have maintained our focus to continue to improve the customer and carrier experience and evolve our digital processes and operating model to drive sustainable and profitable growth.

“Today we believe we are entering a period of slower economic growth where freight markets will continue to cool from their peaks and operate more reliably and at more standardized rates, with less disruption. These changes under market conditions, coupled with many successful efforts on our digital roadmap to evolve our model to be more efficient, allow us to take steps to structurally reduce our overall cost structure,” said Biesterfeld.

“Compared to our third quarter operating expenses, the actions we are taking now are expected to generate $175 million in gross savings on an annualized basis by the fourth quarter of 2023. Inflation, other winds headwinds such as annual salary increases and headwinds such as lower incentive compensation are expected to result in net cost headwinds of $25 million in 2023 which we believe will partially offset gross savings, resulting in net annualized cost reductions of $150 million by the fourth quarter of next year.

Biesterfeld added, “We also continue to identify opportunities to accelerate our company-wide digital and product strategy. To increase impact and speed of execution, Arun Rajan has been promoted to Chief Operating Officer. Arun has been a key contributor and strategic leader in our digital and product strategy. Arun helps us think and act differently as we accelerate our pace of digital transformation and adapt our operating model. »

Click here to read the full press release.

For more information:
Chuck Ives
CH Robinson
[email protected]

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