Expeditors reports record 3Q profits

US-based forwarder and logistics services provider Expeditors International reported record third quarter profitability, with the highest net revenue and operating income in its history.

During this year’s third quarter, net income was up 35.2% year-over-year to $163 million, as net revenue increased 10.4% to $661 million. Operating income for the quarter was up 8.7% to $203 million.

While volumes and business were up across the company’s operating segments, the substantial y-o-y increase in net income is largely attributed to accounting changes. Senior Vice President and CFO Bradley S. Powell noted that the company’s effective tax rate for the three months was 21.8%, compared to 36.7% during the same three months in 2017. The effective tax rate in the most recent quarter benefited from certain discrete adjustments as a result of recent interpretations related to the 2017 Tax Act. Powell emphasized, however, that Expeditors’ effective tax rate in future periods will largely depend on the mix of pretax earnings that are generated in the US versus foreign operations, further interpretation and guidance to be issued on the new tax law, and discrete items that occur in the reporting periods.

All three of the company’s business units performed well overall.

Overall, despite uncertainty surrounding potential trade conflicts, Expeditors performed well and reported a third-quarter operating margin of 30.7%, and a net margin of 24.7%.

Exit mobile version