EGL triples 3rd-quarter earnings
Houston-based forwarder EGL, Inc. said Thursday it tripled its net income while continuing to increase revenue in the third quarter.
Net income reached $17.5 million in the three months ended Sept. 30, up from $5.6 million in the third quarter of 2003.
Gross revenues increased 35 percent to $719.5 million over the same period, reflecting a 36 percent increase in air freight revenues, a 46 percent rise in ocean revenues, and a 23 percent increase in customs brokerage and logistics.
EGL reported continued strong growth in its international business, as well as improvements in priority volumes and continued expansion of deferred shipments in the North America forwarding market.
Overall net revenues at EGL rose 23 percent in the latest quarter — less rapidly than gross revenues — to $225.6 million. The company’s net revenue margin, defined as net revenues divided by gross revenues, dropped to 31 percent in the latest quarter, from 34 percent a year earlier.
“This reflects an acceleration of growth in international air and ocean products which carry a lower net revenue margin but a higher net revenue per shipment, pass-through of higher fuel and security surcharges without corresponding net revenue margin and higher transportation costs due to capacity constraints, mainly from Asia,” EGL said.
EGL’s operating income more than doubled in the third quarter, to $25.4 million, from $11.3 million in the same quarter in 2003.
For the nine months ended Sept. 30, EGL raised its gross revenues 27 percent to $1.94 billion and its net income 145 percent to $36.2 million.
EGL expects annual gross revenues this year to be in the range of $2.6 to $2.7 billion.
The company’s stock rose 6 percent to $31.50 yesterday on the Nasdaq stock exchange.