Expeditors – Q1 air and ocean volumes down, respectively, 18% and 3%

Expeditors reported today its Q1 22 numbers, according to which diluted net earnings per share (EPS) rose 23% to $2.05.

Operating income was up 20% to $462m for the quarter.

However, air freight “tonnage volume and ocean container volume decreased 18% and 3%, respectively”.

(Source Expeditors)

“Given all that we have been through following the February cyber-attack, I have never been more proud of our employees’ ability to adapt – nor have I ever been more grateful to our loyal customers, carriers, and service providers for their unprecedented level of support while we worked through this crisis,” said CEO Jeff Musser in his prepared remarks.

“Our core systems are operational, thanks to the around-the-clock efforts of our entire organization. Our people performed magnificently and we are proud of the financial results, especially considering the additional expenses and reduced volumes as a result of the cyber-attack.”

In Q1, as a result of its “inability to timely process and move shipments through ports”, it booked “approximately $40 million in incremental demurrage charges, where the company has direct liability for this obligation. These costs are recorded in customs brokerage and other services expenses.

“Additionally, in the first quarter, the company incurred investigation, recovery, and remediation expenses, including costs to recover its operational and accounting systems and to enhance cybersecurity protections. These costs are primarily comprised of various consulting services including cybersecurity experts, outside legal advisors, and other IT professional expenses.

“The company also recorded estimated liabilities for potential shipment-related claims. Total amounts recorded for the items above were approximately $20 million and are reported in other operating expenses.”

(The full release is here.)

Seeking Alpha, meanwhile, reported that GAAP EPS, which came in at $2.05, were $0.26 better than consensus estimates, with quarterly revenues at $4.7bn some $440m ahead of expectations. “Expeditors (NASDAQ:EXPD) declares $0.67/share semi-annual dividend, [a] 15.5% increase from prior dividend of $0.58,” it added.

Stock up 1% @ $101 in pre-market trade on the announcement; it closed at $102.65, up 2.64% for the day.