For the quarter ending June 30, C.H. Robinson reported its total revenues decreased by 7.2% year-on-year, to $3.6bn. This was mainly due to lower pricing in truckload and less than truckload (“LTL”) services. Net revenues also decreased by 11.6% to $614.5m, because of lower margin in truckload services. Income from operations totalled $188.8m, down 17.0% from last year due to declining net revenues. While net income totalled $143.9m, down 14.9% from a year ago. However, operating expenses fell by 9.0% to $425.7m, primarily due to $40m of short-term cost reductions.
“Despite a volatile environment, we were able to deliver solid performance across all of our business units due to the tireless efforts of the C.H. Robinson team members around the world and our diversified portfolio of logistics services,” said Bob Biesterfeld, Chief Executive Officer of C.H. Robinson.
Second quarter total revenues for C.H. Robinson’s NAST (North American Surface Transportation) segment totalled $2.5bn, a decrease of 13.8% over the prior year, primarily driven by lower pricing. NAST net revenues decreased by 22.0% in Q2 to $379.6m, with the March 2020 acquisition of Prime Distribution Services (“Prime”) contributing 3.0 percentage points of net revenue growth in the quarter. Net revenues in truckload decreased by 28.5%, LTL net revenues decreased by 13.2%, and intermodal net revenues increased by 26.0% versus the year-ago period.
Global Forwarding segment saw total revenue increase by 19.5% to $707.8m in Q2, mainly driven by higher pricing in air due to reduced air cargo capacity, increased charter flights and larger shipment sizes. Net revenues increased by 14.8% in the quarter to $163.0m. Ocean net revenues decreased 7.8%, driven primarily by an 8.5% decline in volumes. Net revenues in air increased 104.4% driven by higher pricing, partially offset by a 35.5% decline in shipments. Customs net revenues decreased by 16.5%, largely driven by a 17.0% reduction in transaction volume.
Commenting on the rest of the year, Biesterfeld, said, “Our business model is resilient and responsive. We have a strong balance sheet, and we exited the second quarter with $1.6bn of liquidity. We are well positioned to weather the economic uncertainty in the months ahead and emerge stronger from this difficult time.”
Source: C.H. Robinson