CH Robinson's quarterly profit beats view on improved pricing
CHRW•Quarterly profit tops estimates on firmer trucking rates
July 29 (Reuters) - Freight forwarding firm CH Robinson Worldwide CHRW.O reported a bigger-than-expected quarterly profit on Wednesday, as a tightening of supply in the trucking market lifted rates.
The company, the largest freight broker in the U.S., gets about three-quarters of its revenue from the North American Surface Transportation segment.
Here are some details:
- The company was helped by its AI-led cost-cutting efforts that have automated shipment pricing, coordination of pickups and deliveries, as well as monitoring cargo in transit, CEO Dave Bozeman said in a statement.
- The Minnesota-based company's adjusted profit rose to $1.61 per share, above analysts' expectation of $1.52, according to data compiled by LSEG.
- Quarterly revenue rose 21% to $4.93 billion, led by a 23% rise in North America Surface Transport.
- Industrial demand has held strong and trucking rates has firmed up due to regulatory action that has drastically reduced the supply of truck drivers.
- Shares of the company were up 0.7% in extended trading.
