Expeditors International of Washington, Inc. (EXPD) has reported a 3.37 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $110.59 million, or $0.61 a share in the quarter, compared with $114.45 million, or $0.61 a share for the same period last year.
Revenue during the quarter went up marginally by 2.87 percent to $1,642.01 million from $1,596.22 million in the previous year period. Gross margin for the quarter contracted 22 basis points over the previous year period to 31.72 percent. Total expenses were 89.51 percent of quarterly revenues, up from 88.85 percent for the same period last year. That has resulted in a contraction of 66 basis points in operating margin to 10.49 percent.
Operating income for the quarter was $172.21 million, compared with $177.99 million in the previous year period.
"Through the hard work and dedication of our people, we shipped the most freight in our Company’s history and gained market share in the fourth quarter, as we did throughout 2016," said Jeffrey S. Musser, president and chief executive officer. "We are especially pleased with the growth in our customs brokerage and other services, particularly in the U.S. through our Transcon business. Rates remained highly unpredictable in the quarter, as they were throughout much of 2016, again putting unusual pressure on our margins. While experience has shown us that margin pressure is cyclical, in light of such truly unprecedented rate volatility, we are improving processes to better address the rapid changes in buy and sell rates, which we expect to continue."
Operating cash flow declines
Expeditors International of Washington, Inc. has generated cash of $529.10 million from operating activities during the year, down 6.31 percent or $35.61 million, when compared with the last year.
The company has spent $53.20 million cash to meet investing activities during the year as against cash outgo of $7.43 million in the last year.
The company has spent $298.42 million cash to carry out financing activities during the year as against cash outgo of $634.97 million in the last year period.
Cash and cash equivalents stood at $974.44 million as on Dec. 31, 2016, up 20.63 percent or $166.64 million from $807.80 million on Dec. 31, 2015.
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