(Source: Associated Press/AP Online)
MINNEAPOLIS - C.H. Robinson Worldwide Inc. cut costs to offset a slump in demand for shipping logistics services, and the company's third-quarter profit inched higher despite a 15.6 percent drop in revenue.
The company said Tuesday it earned $95.5 million, or 57 cents per share, compared with $93.6 million, or 54 cents per share, a year earlier.
Revenue fell to $1.95 billion from $2.32 billion a year ago.
Analysts expected 55 cents per share profit on $1.96 billion in revenue, according to Thomson Reuters.
The company said a drop in demand reduced the volume of goods shipped, and weak demand combined with lower fuel prices resulted in lower rates.
The company's core trucking business increased 2.1 percent over the previous year, but ocean shipping fell 21.9 percent. Intermodal business - which involves switching freight from one type of transportation to another - plunged 30.1 percent, although it's a relatively small part of the company's operations.
Total costs fell 17 percent, mostly due to lower purchases of transportation services, and operating costs declined $2.6 percent due to lower personnel and overhead costs.
Robinson shares rose 27 cents to $61.47 in regular trading Tuesday.
A service of YellowBrix, Inc.
