C.H. Robinson Reports Second Quarter Results

C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW), today reported financial results for the quarter ended June 30, 2012.

Summarized financial results for the quarter ended June 30 are as follows (dollars in thousands, except per share data):

			Three months ended June 30,												Six months ended June 30,
											%												%
			2012				2011				change				2012				2011				change
Total revenues			$	2,955,714			$	2,707,662			9.2	%			$	5,507,828			$	5,073,134			8.6	%
Net revenues:
Transportation
Truck			$	312,638			$	314,302			-0.5	%			$	628,047			$	608,802			3.2	%
Intermodal				10,019				10,862			-7.8	%				19,730				20,462			-3.6	%
Ocean				16,958				16,400			3.4	%				32,719				31,970			2.3	%
Air				10,577				11,435			-7.5	%				19,450				20,620			-5.7	%
Other logistics services				18,814				14,848			26.7	%				36,276				28,913			25.5	%
Total transportation				369,006				367,847			0.3	%				736,222				710,767			3.6	%
Sourcing				40,205				34,929			15.1	%				72,148				67,928			6.2	%
Payment services				16,312				15,090			8.1	%				31,899				29,512			8.1	%
Total net revenues				425,523				417,866			1.8	%				840,269				808,207			4.0	%
Operating expenses				240,609				237,771			1.2	%				485,810				471,397			3.1	%
Operating income				184,914				180,095			2.7	%				354,459				336,810			5.2	%
Net income			$	114,582			$	111,023			3.2	%			$	221,082			$	208,051			6.3	%
Diluted EPS			$	0.71			$	0.67			6.0	%			$	1.36			$	1.26			7.9	%

Our truck net revenues, which consist of truckload and less-than-truckload (“LTL”) services, decreased 0.5 percent in the second quarter of 2012. Our truckload volumes increased approximately ten percent in the second quarter of 2012 compared to the second quarter of 2011. Our truckload net revenue margin decreased in the second quarter of 2012 compared to the second quarter of 2011, due to our cost per mile rising faster than our price per mile. Excluding the estimated impacts of the change in fuel, our truckload pricing to our customers increased approximately one percent in the second quarter of 2012 compared to the second quarter of 2011. Our truckload transportation costs increased approximately three percent, excluding the estimated impacts of the change in fuel. Our LTL net revenues increased approximately 12 percent. The increase was driven by an increase in total shipments of approximately 17 percent, partially offset by decreased net revenue margin.