Third-party logistics and brokerage giant C.H. Robinson Worldwide increased its net profit 14.2 percent in the second quarter to $111 million as stronger truckload volumes helped lift its revenue 10.3 percent year-over-year to $2.7 billion.
Sales and profit accelerated from the first quarter, when C.H. Robinson reported $2.4 billion in total revenue and a $97 million net profit. Transportation revenue rose 15.5 percent to $2.3 billion, representing 84 percent of the $9.3 billion company’s total revenue in the second quarter.
C.H. Robinson’s truckload shipments rose 3.5 percent from a year ago in the quarter, while less-than-truckload shipments rose about 14 percent, indicating more shippers are turning to LTL carriers to find capacity as truckload costs rise. LTL net revenue increased 28 percent year-over-year, the company said.
The truckload prices C.H. Robinson charged its customers increased 6 percent year-over-year in the quarter, excluding the impact of higher fuel prices, while its truckload transportation costs increased about 4 percent, excluding fuel costs.
Truck net revenue, including truckload and LTL sales, rose 20.9 percent to $314.3 million, 85.5 percent of the 3PL’s total transportation revenue. The company’s total net revenue, after payments to carriers, rose 14.6 percent to $417.9 million.
Intermodal rail volumes increased slightly year-over-year, the company said, but intermodal revenue jumped 15.2 percent, another sign of higher pricing.
Ocean transportation net revenues increased 13.3 percent, driven upward by higher pricing but partially offset by volume declines, C.H. Robinson said. Air transportation net revenue increased only 1.5 percent, as volume dropped.
Only sourcing net revenue declined, falling 14.4 percent to $34.9 million, primarily because of reduced business with a large customer, the company said.
Contact William B. Cassidy at email@example.com. Follow him on Twitter at @wbcassidy_joc