Expeditors International Of Washington, Inc. (EXPD) has reported a 9.07 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $107.58 million, or $0.59 a share in the quarter, compared with $118.31 million, or $0.62 a share for the same period last year.
Revenue during the quarter dropped 5.39 percent to $1,562.39 million from $1,651.33 million in the previous year period. Gross margin for the quarter expanded 38 basis points over the previous year period to 34.90 percent. Total expenses were 89.29 percent of quarterly revenues, up from 88.38 percent for the same period last year. That has resulted in a contraction of 91 basis points in operating margin to 10.71 percent.
Operating income for the quarter was $167.26 million, compared with $191.89 million in the previous year period.
"We grew our business even as rates were rapidly adjusting to a very fluid marketplace and pressuring margins beyond what we would normally expect," said Jeffrey S. Musser, President and Chief Executive Officer. "We've managed through similar cycles before and we know how to adapt. Typically, as in the most recent quarter, rates compress when volumes increase. In the year-ago third quarter, however, we grew volumes at the same time that our airfreight net revenue per ton was the highest in the company’s history."
Operating cash flow improves marginally
Expeditors International Of Washington, Inc. has generated cash of $456.69 million from operating activities during the nine month period, up 1.76 percent or $7.89 million, when compared with the last year period.
The company has spent $34.50 million cash to meet investing activities during the nine month period as against cash outgo of $2.31 million in the last year period.
The company has spent $193.21 million cash to carry out financing activities during the nine month period as against cash outgo of $368.57 million in the last year period.
Cash and cash equivalents stood at $1,042.70 million as on Sep. 30, 2016, up 7.64 percent or $74.02 million from $968.68 million on Sep. 30, 2015.
Working capital increases marginally
Expeditors International Of Washington, Inc. has recorded an increase in the working capital over the last year. It stood at $1,308.08 million as at Sep. 30, 2016, up 2.17 percent or $27.82 million from $1,280.26 million on Sep. 30, 2015. Current ratio was at 2.41 as on Sep. 30, 2016, up from 2.34 on Sep. 30, 2015.
Days sales outstanding went up to 68 days for the quarter compared with 66 days for the same period last year.
At the same time, days payable outstanding went up to 65 days for the quarter from 62 for the same period last year.
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