Expeditors International Of Washington (EXPD) has reported a 3.44 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $93.26 million, or $0.51 a share in the quarter, compared with $96.58 million, or $0.53 a share for the same period last year.
Revenue during the quarter grew 8.93 percent to $1,545.13 million from $1,418.47 million in the previous year period. Gross margin for the quarter contracted 223 basis points over the previous year period to 32.33 percent. Total expenses were 90.54 percent of quarterly revenues, up from 89.30 percent for the same period last year. That has resulted in a contraction of 125 basis points in operating margin to 9.46 percent.
Operating income for the quarter was $146.11 million, compared with $151.83 million in the previous year period.
"Similar to the past few quarters, our people continued to execute well and we again increased volumes and grew market share," said Jeffrey S. Musser, president and chief executive officer. "We were especially pleased with the performance of our Transcon and customs brokerage teams, as they increased business with existing customers and also brought on new customers, proving our investments in those areas are bearing fruit. We remain deeply committed to the strategy we have laid out that continues to develop and grow our core business, leading to the purposeful growth in market share that we have been seeing. At the same time, we understand that we must continue to make future investments to remain in the market leading position our customers expect from us in terms of execution and innovation. Technology continues to advance at a rapid pace and we expect to remain at the leading edge of those changes."
Operating cash flow declines Expeditors International Of Washington has generated cash of $195.68 million from operating activities during the quarter, down 17.07 percent or $ 40.27 million, when compared with the last year period.
The company has spent $13.43 million cash to meet investing activities during the quarter as against cash outgo of $14.59 million in the last year period.
The company has spent $8.54 million cash to carry out financing activities during the quarter as against cash outgo of $28.66 million in the last year period.
Cash and cash equivalents stood at $1,156.04 million as on Mar. 31, 2017, up 14.02 percent or $142.13 million from $1,013.92 million on Mar. 31, 2016.
Working capital increases
Expeditors International Of Washington has recorded an increase in the working capital over the last year. It stood at $1,474.99 million as at Mar. 31, 2017, up 19.62 percent or $241.93 million from $1,233.06 million on Mar. 31, 2016. Current ratio was at 2.59 as on Mar. 31, 2017, up from 2.44 on Mar. 31, 2016.
Days sales outstanding went down to 65 days for the quarter compared with 68 days for the same period last year.
At the same time, days payable outstanding went down to 58 days for the quarter from 62 for the same period last year.
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