C.H. Robinson saw its profits dip more than 50% in its first quarter.
A decrease was expected as both the price and demand for logistics services dropped with slower economic growth. However, the Eden Prairie-based company did not meet analysts' expectations.
The logistics company earned $114.9 million, or 96 cents a share, in the quarter ended March 31, down more than 50% from the same period a year ago. Adjusted EPS was 98 cents a share and down 52% from the first quarter of 2022 and a penny below analyst expectations of 99 cents a share.
Revenue was $4.6 billion, down 32% from a year ago and below analysts' expectations of $4.8 billion.
Other logistics companies also are expected to announce decreased first quarter earnings in the next week or so.
At the start of the year Bob Biesterfeld resigned as chief executive of C.H. Robinson. Board member Scott Anderson has been serving as interim CEO while the board conducts a search for a permanent replacement.
Anderson said on the earnings conference call that the company expects to name a new CEO by the end of June.
C.H. Robinson announced a restructuring in November, and Anderson indicated that the company is looking at cutting its cost structure as global economic growth continues to slow.
Both contract transportation rates and spot rates still declined in the first quarter, but may be nearing the bottom of the industry cycle, he said.
"With shippers continuing to manage through elevated inventories amidst slowing economic growth, the balance of supply and demand has shifted from a tight market a year ago to one that is now oversupplied," Anderson said.
C.H. Robinson reported results after the market closed on Wednesday. Its shares closed Wednesday at $92.50 a share, down 3.5% on an overall down day for the market. Shares have traded between $86.60 and $121.23 over the last 52 weeks.
