Expeditors? 4th-quarter profit slips 16%, Alger retiring

ExpeditorsÆ 4th-quarter profit slips 16%, Alger retiring Seattle, Wash.-based global logistics company Expeditors International of Washington Inc. reported a 16 percent drop in fourth quarter net earnings to $62.6 million, from $74.3 million in the year-earlier period.
   Operating income in the latest quarter improved 18 percent to $99.7 million while revenue gained 13 percent to $1.24 billion.
   Revenue from air freight in the fourth quarter improved 11 percent to $618 million, while ocean freight and ocean services revenue increased by the same margin to $394.9 million. Quarterly revenue from customs brokerage and other services increased 20 percent to $229.4 million.
   'We'll take these fourth quarter results, particularly given the rather stiff comparisons we were up against,' said Peter J. Rose, chairman and chief executive officer of Expeditors.
   For the full year, Expeditors' net income rose 23 percent to $235.1 million. Operating income increased 38 percent to $375.1 million, with revenue up 19 percent to $4.63 billion.
   After announcing its results, Expeditors' shares dropped by as much as 12 percent Tuesday before rebounding to close down 9 cents at $43.58.
   In a separate development, Glenn M. Alger, Expeditors' president and chief operating officer, said he intends to retire from the company sometime during the year. No replacement or organizational changes have been made yet.
   'During the 25 years since Peter (Rose) and I opened Expeditors' San Francisco office, I've taken great pride in being part of a management team that has consistently strived to see Expeditors grow from a fledgling company of 20 people in six offices, to a genuine force in the global logistics industry, with over 11,000 employees in 168 offices around the world,' Alger said.