Expeditors goes from strength to strength

US-based forwarder and logistics services provider Expeditors International continues to set the bar for performance in the forwarding business, reporting first-quarter 2018 net income up 45.5 percent year-over-year to $137 million as net revenue rose 20.5 percent to $637 million. Operating income for the quarter was up 32.0 percent to $193 million.

All three of the company’s operating divisions did well, but, as can be seen in the accompanying chart, the growth was led by a strong performance in the Air Freight division, where net revenue jumped 26.5 percent to $218 million, followed closely by a 21.5 percent increase in net revenue from Customs Brokerage, and more distantly by a 10.8 percent increase in Ocean Freight net revenue to $141 million.

The big jump in Air Freight net revenue came despite a relatively modest 5 percent increase in tonnage. Ocean freight volume also increased by 5 percent in the quarter. Commenting on the volume increase, President and CEO Jeffrey Musser said: “Compared with the robust volume growth in the first quarter a year ago, this quarter’s volume increases and financial performance track more in line with our historical performance.”

Expeditors also continued to lead the industry in terms of profitability, with a first-quarter operating margin (operating income as a percentage of net revenue) of more than 30 percent.