Increases in truck and intermodal volume and pricing pushed C.H. Robinson Worldwide revenue up 11.3 percent from a year ago to almost $3 billion in the third quarter, while the logistics company’s net profit rose 11.4 percent to $114 million.
Revenue, profit and volumes also increased from the second quarter, when the $9.3 billion freight broker reported $111 million in profit on $2.7 billion in sales.
C.H. Robinson’s truckload volumes increased about 4 percent in the quarter, while less-than-truckload shipments jumped approximately 15 percent. Intermodal and ocean volumes also increased, with intermodal revenue rising 14.7 percent.
Net truck revenue rose 13.1 percent to $321.4 million, accounting for 86 percent of the third-party logistics company’s transportation revenue. Net LTL revenue increased 28 percent, as shippers sought more capacity and lower rates.
The Minneapolis-based company’s truckload rates rose 4 percent, while truckload costs rose 3 percent. Slower truckload volume and revenue growth in October worried analysts who warned it could squeeze C.H. Robinson’s margins.
“Our sense is that the slow growth TL market associated with slow economic growth is likely to persist for several more quarters,” J.P. Morgan transportation analyst Thomas R. Wadewitz said in an Oct. 26 note to investors.