Expeditors? 3rd-quarter earnings up 6% despite poor August

ExpeditorsÆ 3rd-quarter earnings up 6% despite poor August    Expeditors International of Washington, Inc. reported net earnings of $32.6 million for the third quarter, an increase of 6 percent over the $30.6 million net result for the same quarter of 2002.
   Expeditors suffered a lower air freight tonnage out of Asia and reduced margins in August, and had warned in September that its results for the third quarter would likely fall short of market expectations.
   During the latest quarter, revenues increased 15 percent to $711.5 million, with operating income rising 4 percent to $49.4 million, when compared with the third quarter of 2002.
   Net revenues increased 11 percent to $196.8 million from $177.8 million.
   “Our August results made it clear that we needed to comment on the financial implications of emerging trends,” said Peter J. Rose, chairman and chief executive officer of Expeditors.
   “We went on to have a fundamentally sound September and we continue to work to catch up with the carrier rate increases,” he said. “Margins did improve somewhat as the third quarter concluded, but growth in air freight tonnage was not sufficient to make up for the August shortfall.”
   Expeditors reported air freight revenue of $307.6 million for the third quarter, down from $318.8 million a year earlier, and ocean freight revenue of $284.9 million, up from $205.2 million.