C.H. Robinson increases income despite decreased revenues

The Eden Prairie, Minn.-based third-party logistics provider posted a net income of $119 million on revenues of $3.1 billion for the first quarter of 2016.    C.H. Robinson Worldwide, Inc.’s net income for the first quarter of 2016 totaled $119 million, an 11.7 percent increase from the same quarter last year, according to the company’s most recent unaudited financial statements.
   The Eden Prairie, Minn.-based third-party logistics provider saw revenues fall 6.9 percent year-over-year to $3.1 billion for the first quarter of 2016.
   However, total net revenues rose 7.3 percent year-over-year to $563.3 million.
   Truckload net revenues for the quarter increased 7.8 percent from the first quarter of 2015 to $321.7 million.
   In addition, less-than-truckload net revenues for the quarter rose 6.9 percent year-over-year to $91.3 million.
   On the flip side, intermodal net revenues plummeted 11.9 percent compared to the first quarter of 2015 to $9.3 million. During the first quarter of 2016, intermodal opportunities were hindered by the lower cost truck market.
   Ocean transport net revenues for the quarter surged 16.9 percent year-over-year to $58.7 million, primarily driven by an increased net revenue margin and higher volumes.
   Meanwhile, air transportation net revenues fell 10.8 percent from the first quarter of 2015 to $18.4 million, largely resulting from lower prices, which were partially offset by margin expansion and volumes increases.
   Customs net revenues for the quarter increased 4.5 percent year-over-year to $10.7 million, due to a rise in transaction volumes.
   Other logistics services, which comprises managed services, warehousing and small parcel, saw the quarter’s net revenues skyrocket 21.4 percent from the first quarter of 2015 to $24 million, largely due to volumes growth in managed services.
   Sourcing net revenues for the quarter dipped 2.3 percent year-over-year to $29.3 million. C.H. Robinson primarily attributed the decline to an increase in product costs due to adverse weather effects, which was partially offset by an increase in case volumes.
   Founded in 1905, C.H. Robinson currently provides services to 110,000 customers through its network of offices across North America, South America, Europe and Asia.