In the midst of persistently low levels of freight demand and an unfavorable pricing environment, C.H. Robinson Worldwide has reported a significant decline in profit for the latest quarter.
The freight broker, headquartered in Eden Prairie, Minn., announced a net profit of $31 million, or 26 cents per share, for the fourth quarter. This marks a stark contrast to the $96.2 million, or 80 cents per share, recorded during the same period the previous year.
After excluding one-time items, the company’s earnings per share amounted to 50 cents. However, this figure fell short of analysts’ expectations of 80 cents per share as projected by FactSet.
Furthermore, revenue experienced a notable decline of 17%, falling to $4.22 billion—below the anticipated $4.33 billion as predicted by FactSet. Specifically, transportation revenue witnessed an 18% drop.
C.H. Robinson’s Chief Executive, Dave Bozeman, acknowledged the challenges faced in the market: “Weak freight demand in an elongated market trough, combined with excess carrier capacity, continued to result in a very competitive market.” Bozeman further noted that 2024 is likely to carry forward some of the same obstacles and headwinds encountered in 2023.
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