RPT-PREVIEW-C.H. Robinson seen posting higher Q3 profit

lunes 20 de octubre de 2008 21:45 CEST

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*C.H. Robinson to report Q3 results on Tuesday

*Analysts expect EPS of $0.53, rev of $2.25 bln for Q3

*Co seen benefiting from asset-light nature of business

By Bhaswati Mukhopadhyay

BANGALORE, Oct 20 (Reuters) - Third-party logistics provider C.H. Robinson Worldwide Inc (CHRW.O: Cotización) is expected to post a higher profit in the third quarter as the asset-light nature of its business helps boost margins amid a sluggish freight environment.

The overall freight market in the United States has been hit by the credit squeeze and analysts believe it is the business model of the company that provides greater earnings resilience in a downturn.

Truck brokerage accounts for about 80 percent of C.H. Robinson's sales, which means the company is less burdened with the fixed costs of maintaining a fleet.

With freight volumes slipping and carriers weighed by excess capacity, third-party logistics companies such as C.H. Robinson are in a better position to bargain for the cheapest rates, helping drive margins.   Continuación...