UPDATE 1-C.H. Robinson Q2 profit misses Street, margins tighten
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July 22 (Reuters) - Third-party logistics provider C.H. Robinson Worldwide Inc (CHRW.O: Cotización) posted a lower-than-expected second-quarter profit, hurt by margin compression in its core transportation business and higher expenses, sending its shares down 7 percent after the bell.
The overall freight market in the United States has been crippled by rising fuel costs and falling volumes resulting from the housing meltdown and slow auto and retail sales.
Net income was $90.4 million, or 52 cents per share, compared to $82.3 million, or 47 cents per share, a year ago.
Total revenue rose 23 percent to $2.32 billion.
Analysts had expected earnings of 55 cents a share, excluding exceptional items, on revenue of $2.20 billion, according to Reuters Estimates.
Transportation gross profits rose 9.7 percent to $297.5 million, while revenue jumped almost 28 percent to $1.93 billion in the second quarter.
However, gross profit margin for the transportation business decreased to 15.4 percent from 17.9 percent a year ago, due to gross profit margin declines in most of the C.H. Robinson's transportation modes.
Total operating expenses rose almost 9 percent to $196.7 million during the latest second quarter.
Shares of the Eden Prairie, Minnesota-based company were down $4.31 at $54.44 in after-market trade. They closed up $1.83 at $58.75 Tuesday on Nasdaq. (Reporting by Eric Yep in Bangalore; Editing by Himani Sarkar)
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