April 27 Earnings Roundup: Swift, C.H. Robinson

Swift Transportation Co. and C.H. Robinson Worldwide Inc. reported higher first-quarter earnings, continuing the broad trend toward improved results in the truckload and logistics sector.

Swift, based in Phoenix, reported net income tripled to $37.8 million, or 26 cents per share, as results improved in the truckload, dedicated and refrigerated units. Revenue rose less than 1% to $1.02 billion. C.H. Robinson’s net income was 14% higher at $106.5 million, or 73 cents per share, reflecting 5% higher revenue of $3.3 billion.

Swift’s results, outlined in a letter to shareholders from Chairman Jerry Moyes and other executives, said the company once again delivered positive operating results.

“We are pleased by these trends, specifically as they relate to revenue growth and profitability improvement within our truckload and Central Refrigerated Service segments,” the letter said.

Profit before interest and taxes nearly doubled in the truckload segment to $57.1 million, even though revenue dipped about 3% to $538.3 million. The refrigerated business doubled profit on that basis to $4.78 million as revenue fell 10% to $95.6 million.

Dedicated revenue rose 12% to $217.8 million, and profit rose nearly 25% to $14.4 million. Intermodal unit results were similar to the 2014 quarter as revenue dipped 1% and the truck/rail unit lost about $1 million.

Swift, which ranks No. 6 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, was helped by nearly $50 million lower fuel costs and almost $13 million less in interest expense. Adjusted earnings per share were 29 cents, compared with 12 cents, and year-earlier net income was $12.3 million.

At C.H. Robinson, net revenue, or the amount remaining after paying transport costs, rose 15% to $525.1 million. Included in those results was 9.6% better net revenue of $298.4 million for the truckload unit as a result of lower fuel costs. Less than truckload, the second-largest segment, improved 42% to $85.4 million. Intermodal, air, ocean, produce sourcing and Customs profit margins also improved.

Truckload rates and transportation charges for the truckload business both rose about 6%. The acquisition of Freightquote, which specialized in LTL brokerage, accounted for about one-third of the net revenue growth, said the statement from Minneapolis-based C.H. Robinson, which ranks No. 4 on  TT’s Logistics 50.

Last year’s first-quarter net income was $93.2 million, or 63 cents.