CH Robinson 3Q profit falls on higher costs

Trucking company CH Robinson posts 7 percent drop in 3Q profit on higher expenses

Associated Press

MINNEAPOLIS (AP) -- NEWS: C.H. Robinson Worldwide Inc. said Tuesday that third-quarter profit fell 7 percent as revenue slid in its key truckload-hauling business while expenses increased.

The trucking company said operating expenses grew 17 percent from a year ago, mostly due to a 30 percent increase in work force because of two recent acquisitions in late 2012. The increase would have been 8 percent without the deals. The company also had costs for amortization of intangible assets tied to acquisitions.

DETAILS: More than half the company's revenue came from hauling truckloads, and that revenue dipped 1.3 percent. Sourcing and payment services also declined. Other smaller segments including ocean, air and customs services more than doubled their revenue.

NUMBERS: Net income fell to $107.7 million, or 69 cents per share, from $116.3 million, or 72 cents per share, a year earlier. Revenue rose 15 percent to $3.32 billion from $2.88 billion.

Analysts surveyed by FactSet expected 73 cents per share on revenue of $3.22 billion.

STOCK: Before the results were announced, the stock fell 80 cents to close at $60.93, down nearly 4 percent for the year. In after-hours trading, the shares were down an additional 93 cents to $60.

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