PR: Expeditors reports fourth quarter 2019 EPS of $0.79

SEATTLE–(BUSINESS WIRE)– Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced fourth quarter 2019 financial results including the following highlights compared to the same quarter of 2018:

•  Diluted Net Earnings Attributable to Shareholders per share (EPS¹) decreased 23% to $0.79
•  Net Earnings Attributable to Shareholders decreased 23% to $137 million
•  Operating Income decreased 17% to $180 million
•  Revenues decreased 9% to $2.0 billion
•  Airfreight tonnage volume decreased 6% and ocean container volume decreased 13%

“Our final financial results for the fourth quarter were within the range of earnings guidance we issued last month,” said Jeffrey S. Musser, President and Chief Executive Officer. “As noted in that guidance, we do not believe this comparatively soft fourth quarter is the result of a business performance issue, but is instead more closely tied to the business environment in which we are operating. Average sell rates declined faster than our average buy rates, and both air and ocean volumes declined as slowing trade to and from China impacted overall freight movement around the globe. In the year-ago fourth quarter, by comparison, we believe our volumes benefitted as shippers moved product ahead of scheduled tariff increases.”

Mr. Musser continued: “Our people and operations in China are a very important part of our global network. China imports and exports are interrelated to all of our other geographic regions and, on a stand-alone basis, represented 26% of our consolidated revenue and 27% of operating income in 2019. While we would normally expect softness in the first part of Q1 because of the Chinese Lunar New Year Holidays, this year has been much more pronounced due to the extended closures of factories in China in support of containing the Novel Coronavirus (COVID-19). There remains a great deal of uncertainty as to when factories will return to full production, and those delays will have a significant impact on freight volumes moved in Q1. In addition to traditional supply chain movements, we also believe this may have a further impact to global supply chains through potential shortages of raw materials, parts and supplies.

“Over our 40-year history, we have experienced many events that have disrupted supply chains. We have not, however, experienced a situation where manufacturing capability has been shut-down or severely hampered to such an extent, so it is difficult to predict how this will play out. However, we remain steadfastly optimistic that when the marketplace does return to normal, we are in an excellent position to take advantage of what could be a sharp rebound in trade.”

– To read the full release, please click here.

– Here is how it fared against estimates.

– Stock down 2.5% in pre-market trade (up 2% in early trade).