Armstrong & Associates, Inc. U.S. and Global Third-Party Logistics (3PL) Market Analysis is Released [3PL]
Third-party logistics gross revenues for the U.S. broke $110 billion for the first time in 2006. 3PL gross revenues hit $113.6 billion, a 9.5% increase. Net revenues were $53.1 billion. EBIT and net income margins in relation to net revenue were 8.6% and 5.4% respectively. Margins for the year were down slightly due to the fourth quarter economic slowdown.
As part of its just released report, Armstrong & Associates estimates the global third-party logistics market at $391 billion. European 3PL revenues are estimated at $139 billion.
For the U.S. market, International Transportation Management (ITM), which includes major components of freight forwarding and global supply chain management, had net revenue increases of 17.7%. Kuehne + Nagel, Expeditors, DHL Global and APL all had net income margins of 10% or greater compared to net revenue. ITM growth is primarily a reflection of continued economic expansion in China and the Asia Pacific markets.
Domestic Transportation Management (DTM), including freight brokerage, posted a 12% gain in net revenues (gross margin). Gross revenues (turnover) were $33.8 billion. BAX, BNSF, C.H. Robinson, Meridian IQ and NFI grew by more than 20%. Hub, Penske, Ryder and Werner grew by 10% or more. After-tax Net margin for DTM was 11.1%
DTM net revenue growth slipped from 18% in 2005 and net income margin dropped by 1%. We attribute these changes to the U.S. economic slowdown; they are temporary downturns and have no significant long term importance for key players in DTM. Despite the slowdown, C.H. Robinson still ended the year with net revenues of $1.1 billion and a net income margin of 24.7%. BNSF Logistics, Hub, NFI and Werner all had double digit net income margins.
Posted at 07:40 パーマリンク
C.H. Robinson Reports Fourth Quarter and Annual Results [3PL]
C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (NASDAQ:CHRW), reported financial results for the three months and twelve months ended December 31, 2006.
Summarized financial results for the quarter and twelve months ended December 31 are as follows (dollars in thousands, except per share data):
Three months ended Twelve months ended
December 31, December 31,
2006 2005 % Change 2006 2005 % Change
profits $278,522 $236,082 18.0% $1,082,544 $879,750 23.1%
income 110,375 92,622 19.2% 417,845 326,361 28.0%
income 71,827 58,146 23.5% 266,925 203,358 31.3%
EPS $0.41 $0.33 24.2% $1.53 $1.16 31.9%
Total Transportation gross profits increased 19.5 percent to $246.2 million in the fourth quarter of 2006 from $205.9 million in the fourth quarter of 2005. Our Transportation gross profit margin increased to 18.3 percent in 2006 from 15.7 percent in 2005.
The increase in our Transportation gross profit margin in the fourth quarter is due to an increase in our truck transportation gross profit margins and to a change in the mix of services that make up this business line. Our truck transportation gross profit margin expanded as overall market demand slowed and the truck capacity market loosened. We also had faster growth in our miscellaneous transportation management services business line, which has a higher gross profit margin than our overall Transportation business line.
Our truck transportation gross profits increased 19.8 percent in the fourth quarter of 2006. Our growth was driven by both increased margins and increased volumes. While our volume growth was relatively consistent as the quarter progressed, our margins expanded through the quarter.
Our intermodal gross profit increase of 11.1 percent in the fourth quarter of 2006 resulted from an increase in gross profit margins, offset in part by a decrease in volume.
In our international freight forwarding business, our ocean gross profits increased 9.3 percent and our air gross profits increased 17.5 percent in the fourth quarter of 2006.
Miscellaneous transportation gross profits consist primarily of transportation management fees, customs brokerage fees, and warehouse and cross-dock services. The increase of 43.4 percent in the fourth quarter was driven by increases in our transportation management fees and customs brokerage business.
For the fourth quarter, Sourcing gross profits increased 7.5 percent to $21.8 million in 2006 from $20.3 million in 2005. This increase was due to higher volumes with retail and foodservice customers through integrated programs.
Information Services gross profits increased 7.0 percent to $10.5 million in the fourth quarter of 2006 from $9.9 million in the fourth quarter of 2005, due to transaction volume growth and an increase in pricing related to certain truck stop services.
For the fourth quarter, operating expenses increased 17.2 percent to $168.1 million in 2006 from $143.5 million in 2005. This was due to an increase of 17.8 percent in personnel expenses and an increase of 15.4 percent in selling, general and administrative expenses.
As a percentage of gross profits, operating expenses decreased to 60.4 percent in 2006 from 60.8 percent in 2005. This decrease was due to a decline in selling, general and administrative expenses as a percentage of gross profits from 14.3 percent to 14.0 percent.
Founded in 1905, C.H. Robinson Worldwide, Inc., is one of the largest non-asset based third party logistics companies in the world. C.H. Robinson is a global provider of multimodal transportation services and logistics solutions, currently serving over 25,000 customers through a network of 214 offices in North America, South America, Europe, and Asia. C.H. Robinson maintains one of the largest networks of motor carrier capacity in North America and works with approximately 45,000 carriers worldwide.
Posted at 07:55 パーマリンク