Forwarder and logistics provider Expeditors International of Washington reported a 12 percent decline in second quarter net profit as air freight revenue fell 14.8 percent.
Net earnings fell to $84 million from $95 million. Net revenue excluding transportation costs slipped 4 percent to $453.7 million. Total revenue declined 5 percent to $1.5 billion. Operating income dropped 13 percent to $132.4 million.
“We saw volume growth in all areas of our business with the exception of air freight, despite navigating in what people are finally acknowledging is a very challenging and uncertain global economy,” CEO Peter J. Rose said.
Expeditors’ ocean freight yields declined, but the company’s direct ocean forwarding net revenue rose 7 percent. Customs brokerage and other services also posted higher net revenue.
Rose said Expeditors’ operating margin of 29.2 percent based on net revenue was below the 32 percent mark of the previous two years, but “still remains very healthy from both a competitive and a historical perspective.”