Expeditors 3Q Profit Falls 33 Percent

SEATTLE (AP) — Freight forwarder and logistics company Expeditors International of Washington Inc. said on Tuesday that its third-quarter profit dropped 33 percent as freight haulers raised prices even amid weak demand.

The company earned $57.8 million, or 27 cents per share, down from profit of $85.6 million, or 39 cents per share, during the same period last year. Revenue fell 34 percent to $1.04 billion from $1.56 billion.

Analysts polled by Thomson Reuters predicted income of 29 cents per share on revenue of $1.02 billion.

The company said it was hurt by freight carriers who cut capacity and imposed "very aggressive price increases."

"Market conditions required that we absorb these increases for several weeks as we worked with customers to raise rates in a commercially acceptable manner," said Chairman and CEO Peter J. Rose.

He said year-over-year declines in freight volumes in September dropped less than in previous months, with airfreight tonnage down 6 percent, and container counts fell 17 percent.

Expeditors shares fell $1.13, or 3.4 percent, to $32.31 in afternoon trading.