Expeditors’ 4Q results reflect weak demand

   Expeditors International of Washington reported a profit for the fourth quarter ending Dec. 31 of $92.8 million, 4 percent less than the same 2010 period.
   Revenue for the quarter was $1.5 billion, down 5 percent, while net revenue was $476 million, a 5 percent increase.
   For the full year, the company had a profit of $385.7 million, a 12 percent increase over 2010. Revenue was $6.15 billion in 2011, up 3 percent over 2010, and net revenue was $1.9 billion, up 12 percent.
   Peter J. Rose, chairman and chief executive officer, said “operating income as a percentage of net revenue, at 32.6 percent, remained well above 30 percent for the seventh straight quarter while salaries as a percentage of net revenue were very much in line with our historical expectations. All in all, we think the things we can control most, we controlled best.
   “We would like to have seen stronger freight volumes as the customary real peak season surge never materialized. The lack of a peak season created irregular demand throughout the quarter,” he said. “While this resulted in some intermittent spot buying opportunities in both the air and ocean freight markets, ultimately they were not sufficient to compensate for relatively weaker freight demand.
   “While 2011 was a record year, and we are generally optimistic about 2012, the underlying flow of goods both in the global economy and throughout our network in January still give us some cause to reiterate those concerns in the near term,” Rose added.