The company said its month-by-month decline in airfreight, measured in kilos, was 11%, 14% and 15%, respectively, for July, August and September. In addition, the largely land- and port-based constraints that had so severely impacted the ocean market have significantly improved to where carriers are once again starting to manage capacity in certain trade lanes in an effort to address declining demand while sustaining falling rates.”ĭeclines in tonnage were stark for Expeditors. Musser said Expeditors is “seeing air capacity return to higher levels, with Hong Kong and other origins in Asia reopening. The decline comes with a silver lining: an easing of congestion and other capacity constraints. “Based on what we currently see, these changing conditions that involve decelerating demand and an overall decline in rates are likely to continue for the remainder of 2022 and into 2023,” CEO Jeffrey Musser said in the statement. Expeditors does not hold a conference call with analysts. The decline in the line item of “salaries and other expenses” of about $3.2 million occurred even as the company’s headcount rose to 20,269 from 19,034.īut looking forward, the comments by Expeditors officials in their earnings statement were mostly bearish. Throw in a small drop in the cost of salaries and other expenses and the end result is a company that took in a small amount of additional revenue and turned most of it into operating profit. That $42.9 million ended up as an increase in operating income of $37.3 million because while the cost of transportation was essentially flat percentage wise, it was up $8.8 million. But in dollar terms, the increase in revenues was $42.9 million.
Expeditors revenues rose a mere 1%, to $4.36 billion. Operating income rose 8% to $526.9 million, an increase of $37.3 million. At approximately 10:40 a.m., Expeditors (NASDAQ: EXPD) was up 7.77%, to $103.17. And the revenue figure for Expeditors was ahead of consensus by $150 million. The company’s unadjusted EPS of $2.54 was ahead of consensus by 55 cents, according to Seeking Alpha. have been added since the original publication).Įxpeditors International managed to squeeze out a solid gain in profits compared to the third quarter of last year on an expense and revenue performance that largely matched that of a year ago.Įquity markets recognized the achievement Tuesday. (Editor’s note: comments from Cowen & Co.
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