Expeditors Profit Soars to Record $90 Million

Soaring air and ocean freight shipping pushed net profit at Expeditors International of Washington up 67 percent to a record $90.3 million in the second quarter, the forwarder said Monday.

The strong demand pushed gross revenue up 69 percent to $1.52 billion, the highest quarterly total for Expeditors since the third quarter of 2008, and the overall revenue figure was 21 percent better than the first quarter.

Expeditors said air freight tonnage was up 54 percent from last year’s depressed second quarter, and gross revenue from air freight shipments nearly doubled, growing 97 percent to $733 million. Net revenue for air freight expanded 42 percent over last year's second quarter, 22.7 percent over this year's first quarter and reached a company quarterly record of $162 million. 

Ocean freight tonnage grew 26 percent year-over-year and the gross revenue from ocean shipping was up 65 percent.

Net revenue overall grew 27 percent to $418.9 million as the company tried to keep up with rising transportation costs, but the operating profit also expanded 59 percent to $138.5 million,

“We were somewhat awed by the strength that we saw in our customers’ supply chains this quarter,” Expeditors Chairman and CEO Peter J. Rose said.

Rose said the net revenue in the second quarter was 5 percent better than in the second quarter two years ago, before the global trade meltdown took hold.

“While it’s much too soon to extrapolate this quarter’s results over the remainder of 2010, we think operating above 2008 levels is a positive development,” he said.