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Expeditors reports strong growth in profits 23 February 2016

Adapted well to a rapidly changing environment

Expeditors International of Washington, Inc. has reported 1/0% growth in revenues in 2015, to reach US$6,616.6 million. Net revenues increased 10.0% to reach US$2,187.8 million as operating income and Net earnings attributable to shareholders both climbed 21.0%, to US$721.5 million and US$457.2 million respectively.

The Company benefited in the first half of the year from some unquantifiable increase in air freight because of the West Coast labour dispute, but was adversely impacted by a softening in rates and volumes in the second half of the year.

The Company adapted well to a rapidly changing environment to produce net revenue yields in Q4 that were among the best in its history. It generated these strong results even though both air and ocean volume growth softened in the latter part of the year, and average sell rates came under pressure. Despite those dynamics, it proved adept at taking advantage of opportunistic buy rates to increase operating profit and produce a Q4 operating income to net revenue margin in excess of 33.0%. In Q4, it continued to benefit from available ocean and air carrier capacity and favourable spot market buying opportunities, even as revenues declined on lower average sell rates and volumes, as a result of slower market conditions.

Looking ahead, global uncertainty has made an increasingly interconnected marketplace more unpredictable, and the Company expects rate volatility to continue for some time.