Snapshot: CH Robinson – fourth quarter & full year results

26/01/2021

After the US markets closed today, CH Robinson published results for the quarter ended 31 December, highlighting the following Q4 ’20 key metrics:

– Gross profits increased 10.5 percent to $636.1 million

– Adjusted gross profits(1) increased 10.7 percent to $640.6 million

– Income from operations increased 51.2 percent to $206.8 million

– Adjusted operating margin(1) increased 870 basis points to 32.3 percent

– Diluted earnings per share (EPS) increased 47.9 percent to $1.08

– Cash flow from operations decreased 23.4 percent to $162.1 million

Full-year key metrics are below:

– Total revenues increased 5.9 percent to $16.2 billion

– Gross profits decreased 7.0 percent to $2.4 billion

– Adjusted gross profits(1) decreased 6.7 percent to $2.4 billion

– Income from operations decreased 14.8 percent to $673.3 million

– Adjusted operating margin(1) decreased 260 basis points to 27.9 percent

– Diluted earnings per share (EPS) decreased 11.2 percent to $3.72

– Cash flow from operations decreased 40.2 percent to $499.2 million

(1) Adjusted gross profits and adjusted operating margin are Non-GAAP financial measures. The same factors described in this release that impacted the Non-GAAP measures also impacted the comparable GAAP measures.

Spot the difference

Here’s the performance of its core NAST unit (click to expand)…

(Source CH Robinson)

… followed by that of its buoyant forwarding activities in the table below.

(Source CH Robinson)

“All Other and corporate results” (Robinson Fresh, Managed Services and others) hit almost $1.8bn in annual sales, up 5.6% year on year.

Adjusted gross profit: Truckload, LTL and customs were hit the most in 2020, confirming trailing quarterly trends.

(Source CH Robinson)

Prepared remarks

“Our fourth quarter was marked by solid performance across our broad service portfolio, continued progress on repricing our truckload business to reflect the changing market conditions, and further advancements in our technology and transformation efforts that are providing meaningful improvements,” said Bob Biesterfeld, Chief Executive Officer of C.H. Robinson.

“Our enterprise portfolio that allows us to offer end-to-end solutions for our customers is unique to the logistics industry, and shippers continue to rely on Robinson’s global supply chain expertise and our data and scale advantages to ensure critical goods are moved as quickly and as inexpensively as possible.”

Outlook

“Due to several factors, including shortages in the number of drivers and available carrier capacity, freight markets remain tight, and we anticipate this will continue for much of 2021. We’re committed to creating better outcomes for our customers and carriers, by delivering industry leading technology that is built by and for supply chain experts and by leveraging our broad service portfolio and our unmatched combination of experience, scale and information advantage to meet their ever-changing needs,” Biesterfeld stated.

“We’re also firmly committed to the focus areas of our investors, including profitable market share growth, investing in technology to unlock growth and efficiency, being a responsible corporate citizen, and driving the transformation of C.H. Robinson, so that we can deliver industry-leading margins and enhance shareholder value.”

To read the full release, please click here.

Now read this: “CH Robinson EPS beats by $0.11, beats on revenue“.

And this: “CH Robinson earnings, revenue beat in Q4“.

Reaction: Stock up ~ 3.5% above $100 in after-hour trade.