Expeditors International Net, Revenue Take Hit from 'Convergence of Industry Challenges'
Expeditors International of Washington had net earnings of $88.5 million for the third quarter of 2012, down from $106.6 million a year ago. Net revenue decreased 6% to $465.1 million. For the nine months ended Sept. 30, net earnings were $249.2 million, compared to $292.8 million for the same period in 2011, and net revenue for the nine months decreased to $1.37 billion from $1.42 billion. Chairman Peter Rose said: “During our 30+ year operating history, we have never had the kinds of convergence of industry challenges, in both our customers and service providers' industries, than we have experienced this year. Financially struggling air and ocean carriers, airfreight markets adapting to smaller, lighter, more powerful smart phones and mobile tablets versus heavier PCs, lackluster consumer and business demand and global economic uncertainty have all combined to create a very uniquely challenging business environment.”
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The company reported a small uptick in revenue from its customs brokerage and other services division. That division reported $359.7 million in revenue for the third quarter of 2012, up from $358.9 million in the same quarter last year. The company's customs brokerage also saw a slight decrease in operating expenses, which were $162.1 million in the quarter, compared to $162.2 million a year ago.