C.H. Robinson Reports 2024 Third Quarter Results

C.H. Robinson Worldwide, Inc., a global leader in third-party logistics, has released its financial results for the third quarter of 2024. The company has shown significant improvements in profitability and operational efficiency, despite facing a prolonged freight recession.

Financial Highlights

For the quarter ended September 30, 2024, C.H. Robinson reported a notable increase in several key financial metrics:

• Gross profits increased by 15.5% to $723.8 million.
• Income from operations surged by 58.7% to $180.1 million.
• Adjusted operating margin rose by 660 basis points to 24.5%.
• Diluted earnings per share (EPS) increased by 17.6% to $0.80.
• Adjusted EPS saw a significant rise of 45.5% to $1.28.
• Cash generated by operations decreased by $97.2 million to $108.1 million.

Business and Operational Highlights

The company experienced a 7.0% increase in total revenues, reaching $4.6 billion, primarily driven by higher pricing and volume in ocean services. However, this was partially offset by lower pricing and volume in truckload services. The North American Surface Transportation (NAST) segment saw a 4.9% decrease in total revenues, while the Global Forwarding segment experienced a 58.7% increase in total revenues.

Strategic Initiatives and Corporate Developments

During the third quarter, C.H. Robinson returned $77.1 million to shareholders through cash dividends and stock repurchases. The company also reported a $57.0 million loss on the planned divestiture of its Europe Surface Transportation business.

Management's Perspective

Dave Bozeman, President and Chief Executive Officer of C.H. Robinson, expressed satisfaction with the third quarter results, highlighting the company's strong execution and disciplined volume growth. Bozeman emphasized the importance of the new operating model in improving operational efficiency and competitive differentiation.

Future Outlook

The company expects its full-year effective tax rate to be between 18% and 20%. Capital expenditures for 2024 are projected to be in the range of $75 million to $85 million.

SEC Filing: C. H. ROBINSON WORLDWIDE, INC. [ CHRW ] - 8-K - Oct. 30, 2024